#TradingPsychology Trading psychology refers to the emotional and mental factors that influence traders' decisions and behaviors in financial markets. Emotions such as fear and greed can significantly impact trading outcomes.

Common Psychological Biases in Trading:

1. Overconfidence Bias: An inflated belief in one's trading abilities, leading to excessive risk-taking.

2. Anchoring Bias: Relying heavily on initial information (e.g., purchase price) when making decisions, potentially causing misjudgment of an asset's current value.

3. Herd Mentality: Following the actions of the majority without independent analysis, which can lead to asset bubbles or crashes.

4. Belief Perseverance: