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Home>Courses>Trader Mindset>Lesson 4 of 6

Cognitive biases

The mental shortcuts that quietly distort a trader's decisions.

Trader Mindset·Lesson 4 of 6

All lessons

By the end of this lesson you'll be able to:

  • 01Define confirmation bias
  • 02Name other common trading biases
  • 03Reduce the impact of bias
1

Step 1 · Read the guide

Read the guide first

Everything the quiz asks is covered in the linked guide. Read it, then answer the questions below.

How Confirmation Bias Affects Trading: Examples and Fixes
Key terms
Confirmation BiasBiasLoss AversionTrading Journal

Step 2 · Take the quiz

Quick check

10 questions

Answer all 10, then check. Wrong answers show a hint and a link back to the guide.

  1. Question 01

    Confirmation bias is the tendency to do what?

  2. Question 02

    In trading, what does confirmation bias often make you do?

  3. Question 03

    What tendency does loss aversion describe?

  4. Question 04

    What is overweighting recent events called?

  5. Question 05

    After a few wins you feel invincible and size up recklessly. What is this?

  6. Question 06

    A trader in a losing position only reads news that supports the trade. What is this?

  7. Question 07

    You dismiss every warning sign and keep only the evidence that agrees with your trade. What is this?

  8. Question 08

    What can loss aversion make traders do?

  9. Question 09

    What is a practical way to reduce bias before entering?

  10. Question 10

    How do a checklist and a journal help with bias?

Answered 0 of 10 · pass 70% (7/10) to complete

Trader Mindset4 of 6
  1. Trading psychology basics
  2. Beating FOMO and overtrading
  3. Handling losses and revenge trading
  4. →Cognitive biases
  5. Fear and greed
  6. Journaling and discipline
  7. ⚑Final Assessment· 20 Q