THE INVISIBLE TAX ON YOUR TRADING: COGNITIVE BIAS

Why your “diversified” portfolio might be one big bet in disguise
Your biggest trading expense isn’t fees.
It’s your brain.
Any of these scenarios sound familiar?
  • Ignoring bad signals because you’re already in a trade (confirmation bias)
  • Holding losers because you’ve “invested too much to quit” (sunk cost fallacy)
  • Chasing last month’s winner just as it starts failing (recency bias)
  • Cutting winners early but letting losers run (loss aversion)
Research shows these biases are costing you money – it’s not a question of if they are, it’s how much are you already losing.

How network-based trading neutralises psychological blind spots

Pelican’s community creates natural bias-checking:

  • Multiple perspectives reduce confirmation bias
  • Transparent track records combat recency bias
  • Diverse approaches prevent single-method addiction
  • Community feedback provides wider viewpoints

 

Between 74-89% of retail CFD traders lose money. But having a framework for better decision-making helps.
The best traders aren’t those with secret indicators. They’re people who’ve learned to overcome their psychological limitations.