Hindsight bias in trading is the tendency for individuals to express that they 'knew it all along', once they know the answer to a question or the outcome of an event that was previously uncertain. The consequence of hindsight bias is that it often leads to a false sense of confidence. One way to minimise the impact of hindsight bias is by keeping a trading diary.

<p>Hindsight bias in trading is the tendency for individuals to express that they 'knew it all along', once they know the answer to a question or the outcome of an event that was previously uncertain. The consequence of hindsight bias is that it often leads to a false sense of confidence. One way to minimise the impact of hindsight bias is by keeping a trading diary.</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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