Optimism Bias - OPTIMISM BIAS
Coins: PEPE • GNS • OGN
Real-life example: The trader believes they will profit while others lose
• PEPE: It will go up for me
• GNS: Losses happen to others
• OGN: Not me, it's not my problem
The trader is convinced: PEPE's gains are mine, and the losses belong to others; I'm immune to losses
Why does this happen? - Causes of the bias
> • The brain underestimates personal risks
> • It overestimates positive outcomes
Steps to protect yourself
1- Be realistic about probabilities: Rely on data and don't assume you're an exception
2- Plan for the worst-case scenario: Make a plan in advance for what you'll do if the market reverses
3- Use a stop-loss: Set an exit point in advance and stick to it, no matter what
4- Diversify risk and check the rates: Diversify your investments • Review historical rates (Base Rates)
#BinanceSquare #CryptoCommunity #writetoearn #Binance #bitcoin
$PEPE $OGN $GNS
Coins: PEPE • GNS • OGN
Real-life example: The trader believes they will profit while others lose
• PEPE: It will go up for me
• GNS: Losses happen to others
• OGN: Not me, it's not my problem
The trader is convinced: PEPE's gains are mine, and the losses belong to others; I'm immune to losses
Why does this happen? - Causes of the bias
> • The brain underestimates personal risks
> • It overestimates positive outcomes
Steps to protect yourself
1- Be realistic about probabilities: Rely on data and don't assume you're an exception
2- Plan for the worst-case scenario: Make a plan in advance for what you'll do if the market reverses
3- Use a stop-loss: Set an exit point in advance and stick to it, no matter what
4- Diversify risk and check the rates: Diversify your investments • Review historical rates (Base Rates)
#BinanceSquare #CryptoCommunity #writetoearn #Binance #bitcoin
$PEPE $OGN $GNS
