Lesson 6 – Confirmation Bias

Problem
You only see evidence supporting your bias, ignoring contrary signals.

Cause

• Desire to be “right.”
• Selective attention.

How the Brain Works

• Prefrontal cortex filters info to confirm beliefs.
• Dopamine rewards “being right,” reinforcing bias.

Real-Life Example
Tom is bullish on EUR/USD. Price breaks structure bearish, but he keeps buying dips, ignoring the obvious shift.

Practical Solutions

1. Ask: What Would Prove Me Wrong?
2. Journal Opposite Scenarios – always write both bull & bear outlook.
3. Peer Challenge – let someone else test your bias.
4. Chart Both Sides – mark support and resistance.

Key Takeaway: The market doesn’t care about your bias ⚖️. Train your eyes to see both sides 👀.