Glossary › anchoring

Trading glossary · psychology

anchoring

When the first number you see sticks in your head and pulls your later guesses toward it, even when it no longer matters.

The fuller meaning

A cognitive bias in which judgements are pulled toward a starting reference, such as an old high or your entry price. Anchored traders expect a return to that number instead of reading the current trend. The fix is to build the plan from present evidence: structure, levels and a stop.

anchoring.

Related words

boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion · entry rule