Confirmation bias is the tendency for traders to search for, and put greater weight behind, information that confirms their pre-existing beliefs or predictions. This can be prevented by carrying out your own analysis – whether this is technical or fundamental – and trusting that it is correct, even if it clashes with earlier predictions or preconceptions.

<p>Confirmation bias is the tendency for traders to search for, and put greater weight behind, information that confirms their pre-existing beliefs or predictions. This can be prevented by carrying out your own analysis – whether this is technical or fundamental – and trusting that it is correct, even if it clashes with earlier predictions or preconceptions.</p>

When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.

<p>When it comes to investing or trading, your mindset is one of the most important things that play a part. How does psychology impact trading? Discover the factors that can influence financial decisions – personality, emotions and moods, biases and social pressures. We unpack these in this series, Trading Psychology, brought to you by IG.</p>

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