News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Looking at the moves in the #DollarIndex and #gold in the days after US CPI this week, @tastytradeRyan, @victorJ0NES and I were on to something here... Bring on #FOMC! https://t.co/msk67privX
  • https://t.co/XFJ04Ve6fT
  • Copper prices eye key support to resume downtrend - #HG1! chart https://t.co/r1drGpDlGK
  • $USD to next resistance at 93.20 next levels up 93.43 and then the 2021 high at 93.73 https://t.co/hxfxJpCb33 https://t.co/srLbQHVbYO
  • USD/JPY extends the rebound from the weekly low (109.11) as the stronger-than-expected US Retail Sales report fuels speculation for an imminent shift in monetary policy. Get your market update from @DavidJSong here:https://t.co/Rozq62QbN4 https://t.co/IGVzuakGGA
  • $ES from resistance to support now at the weekly low, testing a few different support elements here, also a 618 $SPX https://t.co/cchd5Rr92S https://t.co/G9jwiIlEjY
  • The $SPX is going to keep it interesting for us through this final trading session. The 50-day SMA is under strain, its 'quad witching' today, evergreen uncertainty over weekend and FOMC on the threat radar https://t.co/gLgVn8u6HJ
  • The S&P 500 and its counterparts are leaning into support as the end of the week nears. DailyFX's @JohnKicklighter discusses the possibility of a break before next week's FOMC and Evergrande deadline! https://t.co/R5Pr9k2xp8
  • You're Not The Only One Bored Of 'New' Apple iPhones https://t.co/T3ZXZ8wplw via @IBDinvestors
  • $USDCAD big test, right at the Sept. high https://t.co/D9baX3BGXf https://t.co/Sg2ySGIIY8
Cognitive Biases Can Slow Our Appreciation of Market Shifts

Cognitive Biases Can Slow Our Appreciation of Market Shifts

John Kicklighter, Chief Strategist

Talking Points:

  • Cognitive biases are a patterns where people frequently deviate from rationality - and are very common in trading
  • We focus on three biases that commonly build on each other: anchoring, confirmation bias and availability cascade
  • Monetary policy themes, cross correlations and risk connections are reviewed with these biases in mind

Having trouble trading in the FX markets? This may be why.

Traders are not robots, which is why the market builds on trends of speculation and sometimes-'irrational' expectations. However, cognitive dissonance can lead the markets to extremes that eventually correct when pricing runs too far askew of the tangible fundamentals. There are a host of 'cognitive biases' (patterns where views deviate from rational views or decision making) that impact market assumptions both for individual traders and the entire 'herd'. In today's Strategy Video, we focus on three in particular that tend to create a cycle of reinforcement - anchoring, confirmation and the availability cascade. We discuss what these biases are along with how they direct market assumptions on popular themes like relatively monetary policy, the relationship between USDCAD and oil, as well as the presumed influence of oil prices on general risk trends.

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES