Blog de Trading
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Exibindo 18 artigos em #behavioral-finance
#behavioral-finance

Sunk Cost Fallacy: Why Traders Hold Losers Too Long
Defeat the sunk cost fallacy with pre-defined invalidation, time stops, and a reframe that asks whether you would enter the position fresh today.

Self-Attribution Bias and Systematic Trading Errors
Stop crediting wins to skill and losses to luck; use blind review, pre-mortems, and variance isolation to find systematic errors in your trading.

Overconfidence and Frequent Trading: The Turnover Penalty
See how overconfidence drives excessive trading frequency, the Odean turnover-and-underperformance findings, and concrete limits to slow yourself down.

Loss Aversion: How It Wrecks Trading Performance and the Fixes
Learn how loss aversion distorts risk-taking, cuts winners early, and lets losers run, plus concrete fixes using R-multiples and hard stops.

Herding Effect: Chasing Hot Stocks and the Late-Entry Trap
Recognize herding and FOMO entries at market tops, filter crowd-driven spikes, and use pullback entries with relative-strength ranking.

Endowment Effect: Why Traders Refuse to Stop Out
Overcome the endowment effect — overvaluing held positions — with abstraction, pre-set automated stops, and accountability review of open risk.

Anchoring Bias: How It Harms Your Stop-Loss Placement
Stop anchoring to entry prices and round numbers; use ATR-based and market-structure stops to place exits where the thesis actually fails.

Kahneman System 1 and System 2 in Trading
Your brain runs two systems — System 1 fast and emotional, System 2 slow and analytical — and in trading the battle between them is the battle between your plan and your impulses.

Self-Attribution Bias and Trade Review
Self-attribution bias credits successes to skill and blames failures on luck, and in trading it protects your ego by editing the cause of every outcome at the cost of lessons never learned.

Overconfidence and Trading Frequency
Overconfidence is the systematic overestimation of one's own ability, and the most documented bias in finance consistently pushes traders toward excessive trading frequency.

Loss Aversion and Gain/Loss Asymmetry
A $1,000 loss feels roughly twice as painful as a $1,000 gain feels good, and that single asymmetry formalized in prospect theory drives more trading mistakes than any other bias.

Herding Effect and Market Bubbles
Herding is the tendency to imitate the actions of others under uncertainty, and individually rational it produces the collectively catastrophic outcomes we call bubbles.
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