A short YouTube transcript excerpt offering trading advice on how to recognize and counter confirmation bias. The speaker recommends that traders deliberately seek opposing evidence before entering a trade—flip your thesis, list negatives, and actively consider why the trade might fail.
We as humans, we have this tendency that whenever we want to do anything, be it trading or not trading related, we will only seek information that once again supports what we are looking for. If this is happening to you, this is what I would personally do. Every time you take on a trade, I would start trying to look at the negatives. I would start trying to look at the other side. So if you want to go long and your thesis makes sense of this trade should go long, start trying to look at the other side of the trade. So, hey, I want to go long. Well, why would this not go up? Why would this trade not go in my direction? Start flipping that from a different perspective. If this is a problem you're dealing with.
