Trading Psychology Research

Your brain is your
worst trade.

Mind the Market explores the cognitive biases, emotional patterns, and psychological traps that silently sabotage your portfolio. Academic rigor, made readable.

Your Brain on Trading

Six cognitive biases that cost traders billions every year. Understanding them is the first step to beating them.

Loss Aversion

Losses feel 2x more painful than equivalent gains feel good. This makes traders hold losers too long and sell winners too early.

Kahneman & Tversky, 1979

Confirmation Bias

You seek information that confirms what you already believe about a trade — and ignore evidence that contradicts it.

Affects 87% of retail traders

Herd Mentality

Following the crowd feels safe. But by the time everyone's buying, the smart money has already sold. Social proof is a lagging indicator.

Amplified 4x by social media

Anchoring

Your first piece of information dominates all subsequent decisions. If you bought at $100, you'll irrationally anchor to that price forever.

Tversky & Kahneman, 1974

Overconfidence

After a few winning trades, you believe you've cracked the code. Overconfidence leads to oversized positions and blown accounts.

74% overestimate their skill

Recency Bias

Recent events carry disproportionate weight. A week of green candles makes you forget about the last crash — until it happens again.

Peak impact: 7-day window