Confirmation Bias

Confirmation bias is the human tendency to look for evidence that supports your existing view and dismiss anything that contradicts it. In trading, it's lethal. You go long EUR/USD, then you only read bullish analyses, follow bullish accounts on Twitter, and ignore the bearish data. Your view feels validated even though you've actively avoided the contradicting evidence. The trap is that confirmation bias FEELS like research. You're "doing your homework" — but you're filtering out 50% of the information. By the time the trade goes against you, you're surrounded by people who told you exactly what you wanted to hear, and you're shocked when reality breaks the illusion. The fix is to actively seek out the OPPOSITE view. If you're long EUR/USD, deliberately read the best bearish analyses you can find. If you can't refute them with hard data, your long isn't as solid as you think.