Anchoring in Trading
Sometimes we make rash decisions without thinking. We might feel like we had a very good basis for taking the action, but the final results are still disappointing. One of the reasons this happens is anchoring. Anchoring can affect our decision making process and mess with our perception of our actions.
In this article, you will learn about what anchoring bias is, what causes it, why it is dangerous, and how you can prevent it from influencing your trades.