CLICK TO WATCH : ‘ AN INTRODUCTION TO CAPITAL . COM ’ 49 with some of these known biases ,” explains Gowan . “ People exhibiting an over-confidence bias , for example , may have had a couple of wins so think trading is easy and start taking on a lot more risk . Increasing trade sizes substantially can be risky for your outcomes , so it ’ s really important to stay measured and balanced to avoid wiping out your profit . It ’ s an easy bias scenario to detect in our system .”
Gowan notes there are many others , such as urgent bias , seen in all areas of life . “ We don ’ t like to lose and in the
world of trading , you ’ re getting skin in the game , you think something is going to happen , you put a trade on and sometimes your analysis can be spot on , but your timing is not quite right …” Markets can behave irrationally , he adds , either over exuberant or over correcting , so it ’ s important to be able to accept a small loss to preserve capital and avoid a bigger loss .
“ We detect 25 different types of trading bias or behaviour and then provide our clients with personalised insights around the specifics they are exhibiting in their trading . For us , it ’ s
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