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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Oil - US Crude
Wall Street
More View more
Real Time News
  • Have you been catching on your @DailyFX podcast "Global Markets Decoded"? Catch up on them now, before new episodes release!
  • [corr] All things considered, $USDSGD, $USDMYR, $USDPHP and $USDIDR failed to generate much upside momentum lately despite rising volatility in the #SP500 Could this continue from here? Check out my latest #ASEAN fundamental outlook here -
  • The London trading session accounts for around 35% of total average forex turnover*, the largest amount relative to its peers. The London forex session overlaps with the New York session. Learn about trading the London forex session here:
  • 🇳🇱 Consumer Confidence (SEP) Actual: -28.0 Previous: -29
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.44%, while traders in EUR/JPY are at opposite extremes with 63.92%. See the summary chart below and full details and charts on DailyFX:
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.13% 🇯🇵JPY: 0.13% 🇬🇧GBP: 0.04% 🇨🇭CHF: 0.01% 🇪🇺EUR: -0.02% 🇦🇺AUD: -0.02% View the performance of all markets via
  • Heads Up:🇳🇱 Consumer Confidence (SEP) due at 04:30 GMT (15min) Previous: -29
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: France 40: 0.93% Germany 30: 0.92% FTSE 100: 0.64% US 500: 0.04% Wall Street: 0.01% View the performance of all markets via
  • #Gold and #Silver are at risk of extending their slide from monthly highs as the lack of additional fiscal stimulus and rising geopolitical tensions underpin #USD $GC $SI $SLV $GLD
  • Entry orders are a valuable tool in forex trading. Traders can strategize to come up with a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out. Learn how to place entry orders here:
Becoming a Better Trader: Understanding How Biases Impact You (Webinar)

Becoming a Better Trader: Understanding How Biases Impact You (Webinar)

2017-04-27 11:40:00
Paul Robinson, Strategist

Join Paul every Tuesday-Friday for webinars. For details and a full line-up of all upcoming live events, please see the Webinar Calendar.

Today, we discussed a number of cognitive biases which impact traders and the decisions they make, and ways to help overcome them.

Loss-aversion bias, the preference for avoiding a loss to acquiring an equal amount in gains (-$1 vs. $1). When faced with risk traders tend to make mistakes such as setting stops too close to their entry, or exit prior to their stop-loss, or exiting too soon before the predetermined target is met. A solution for overcoming this bias is to have each trade planned out ahead of time and trade with a position size which allows you to more easily stay the course. Also, thinking about the pain of missing out on a trade your analysis tells you that you should be in, in of itself, should offer plenty of motivation to stick to the trade presented to you. Letting a winner get away from you can be more painful than taking a loss.

Hindsight bias, the tendency to ‘think’ you could have foreseen an event happening once it’s happened (I knew it all along!) We all suffer from this from time to time. The question you should ask yourself is, did my analysis tell me I really know what was going happen, or is it my mind just messing with me? Often times the answer will be, no, no you didn’t really know ahead of time. Being objective in this situation will help keep frustration at bay from a ‘missed opportunity’, and ultimately keep you from making mistakes which can be bred from frustration, like chasing a trade that ‘got away’ or making some other silly mistake which doesn’t fit within your game-plan.

Directional bias, the preference to trade primarily from one side of the market. This often stems from your early experiences of whether you had success in bull or bear market conditions. The reinforcement from early experiences can cause a trader to focus on opportunities from only one side of the market. This can be a hard one to overcome, but asking yourself if you would take an opportunity in one direction if it was in the ‘preferred’ direction can be helpful. Also, taking smaller more comfortable size on ideas which go against your directional bias can help build confidence towards being more flexible.

Other biases discussed include ‘confirmation’ bias, ‘recency’ bias, ‘anchoring’ bias, and ‘gambler’s fallacy’. For full details, please see the video above.

See our quarterly forecasts for FX, equity indices, and commodities and find out where our team of analysts see markets heading for the remainder of Q2.

---Written by Paul Robinson, Market Analyst

You can receive Paul’s analysis directly via email by signing up here.

You can follow Paul on Twitter at @PaulRobinonFX.

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