In this episode of Talking Shop with IG, hosts Luke, Sean, and guest Ronni dive deep into the psychological aspects of trading, focusing on three major cognitive biases that can make or break a trader's success.

Key Timestamps:

00:02:19 - Introduction to trading biases and their impact

00:03:17 - How traders often enter markets with inherent biases

00:04:00 - Introduction to three main types of bias: confirmation bias, gambler's fallacy, and loss aversion

00:11:14 - Real-world example of confirmation bias using Tesla stock

00:19:15 - Deep dive into the Monte Carlo fallacy and gambler's bias

00:28:10 - Exploration of loss aversion and its psychological impact

00:40:29 - Practical advice for managing trading biases

00:42:04 – Key summary and tips on trading biases

00:45:20 - "Margin Call" segment: Discussion of notable market fails of the week

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Do you have trading biases? 50:49 Share

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Shownotes Transcript

Do you have trading biases?