Confirmation Bias

Confirmation bias is the tendency to favor information that supports an existing belief while discounting evidence that challenges the original view.

In trading, the bias can appear as seeking bullish commentary after buying, dismissing contrary data, or moving an exit rule to preserve a preferred narrative. A written trading plan can reduce its influence by defining evidence, invalidation, and review criteria before money is at risk. Deliberately testing an opposing case and recording decisions can improve process, but no checklist removes human judgment or market uncertainty.