Confirmation bias is the one factor that is most common amongst professional traders. Looking for information that will support a decision you have made, even if it wasn't the best decision, is simply a way of justifying your actions and strategies. The problem is that by doing this, you're not actually improving your methods, and you're just going to keep making the same trading mistakes. Unfortunately, this can create an infinite loop in Forex trading psychology that can be difficult to break.

The blender costs $100 to manufacture, and the U.S. firm plans to sell it for €150—which is competitive with other blenders that were made in Europe. If this plan is successful, the company will make $50 in profit because the EUR/USD exchange rate is even. Unfortunately, the USD begins to rise in value versus the euro until the EUR/USD exchange rate is 0.80, which means it now costs $0.80 to buy €1.00.
When you've overcome trading bias and are ready to take your trading experience to the next level, the best way to do it is to expand the possibilities of your trading platform by downloading MetaTrader Supreme Edition. Boost your trading capabilities by accessing the latest technical analysis provided by Trading Central, access global opinion widgets, receive FREE real-time news, benefit from superior charting capabilities, and so much more!
You need to become an organized trader. If there is something that is the “glue” that holds all of the points I’ve discussed in this part together, it is being an organized trader. By organized, I mean having a trading plan and a trading journal and actually using both of them consistently. You need to think of Forex trading like a business instead of like a trip to the casino. Be calm and calculating in all your interactions with the market and you should have no problem keeping the emotional trading demons at bay.
Most retail investors should spend time investigating a forex dealer to find out whether it is regulated in the U.S. or the U.K. (dealers in the U.S. and U.K. have more oversight) or in a country with lax rules and oversight. It is also a good idea to find out what kind of account protections are available in case of a market crisis, or if a dealer becomes insolvent.
Admiral Markets Cyprus Ltd is registered in Cyprus – with company registration number 310328 at the Department of the Registrar of Companies and Official Receiver. Admiral Markets Cyprus Ltd authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC), license number 201/13. The registered office for Admiral Markets Cyprus Ltd is: Spyrou Kyprianou 20, Chapo Central, 1st floor, Flat/Office 102, 1075, Nicosia, Cyprus
The best case scenario in confirmation bias is that a trader will simply waste precious time researching what they already knew to be true. However, the worst case scenario is that not only will they lose time, but also money and the motivation to trade. A trader must learn to trust themself, and be happy to use their intelligence to develop profitable strategies, and then be able to follow them without fear or doubt.
When you've overcome trading bias and are ready to take your trading experience to the next level, the best way to do it is to expand the possibilities of your trading platform by downloading MetaTrader Supreme Edition. Boost your trading capabilities by accessing the latest technical analysis provided by Trading Central, access global opinion widgets, receive FREE real-time news, benefit from superior charting capabilities, and so much more!
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