What is Confirmation Bias?

Confirmation bias is the habit of looking for, noticing and remembering evidence that supports what you already believe, while discounting evidence against it. In markets it shows up as reading only the bullish articles about a stock you own, or only the charts that agree with your trade.

Why Confirmation Bias matters

A view that is never tested against the case for the other side can stay wrong for a long and expensive time.

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Lessons that use this term

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