What is the term used to describe the tendency to fixate on the first piece of information received, such as an initial stock price?

"Confirmation Bias" "Anchoring Bias" "Functional Fixedness" "Attribution Bias"

Which cognitive bias can lead traders to miss potentially profitable opportunities due to their rigid adherence to a predetermined price target?

"Functional Fixedness" "Confirmation Bias" "Anchoring Bias" "Attribution Bias"

How can traders overcome the limitations of Functional Fixedness in their approach to trading?

"By relying on traditional trading strategies" "By strictly adhering to technical analysis indicators" "By practicing 'out-of-the-box' thinking and exploring unconventional solutions" "By focusing solely on fundamental analysis"

What is the key characteristic of Confirmation Bias in trading?

"Traders objectively evaluate all available information" "Traders actively seek out information that contradicts their initial hypothesis" "Traders primarily focus on information that supports their pre-existing trading view" "Traders rely solely on expert opinions to make trading decisions"

How can traders effectively address Attribution Bias in their trading practices?

"By blaming external factors for trading losses" "By ignoring trading losses and focusing only on profits" "By maintaining a detailed trading journal to analyze their decision-making process" "By seeking constant validation from other traders"