Understanding the Illusion of Control in Trading: Insights from Binance

Binance Blog published a new article, revealing insights into a recent trend affecting traders' perceptions and behaviors. The article delves into the psychological biases of the gambler’s fallacy and self-attribution bias, which can lead traders to develop an illusion of control over market outcomes. These biases can distort traders' understanding of probabilities and skill, pushing them towards gambling-like behavior that may result in overconfidence and significant losses. The gambler’s fallacy is the belief that a reversal is due after a streak, such as expecting a market bounce after a dip source: https://www.binance.com/en/square/post/25515440115370?utm_source=BinanceNewsRSS