What is the term used to describe the tendency to fixate on the first piece of information received, such as an initial stock price? Option: "Anchoring Bias", "Confirmation Bias", "Attribution Bias", "Functional Fixedness"

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

"Anchoring Bias"

"Confirmation Bias"

"Attribution Bias"

"Functional Fixedness"

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

"Attribution Bias"

"Anchoring Bias"

"Confirmation Bias"

"Functional Fixedness"

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What is 'recency bias' in trading?

"The tendency to overemphasize recent events while ignoring historical trends"

"The belief that past market performance predicts future results"

"The practice of solely relying on fundamental analysis for investment decisions"

"The act of dismissing technical analysis in favor of market sentiment

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What is the key characteristic of Confirmation Bias in trading?

"Traders actively seek out information that contradicts their initial hypothesis"

"Traders rely solely on expert opinions to make trading decisions"

"Traders primarily focus on information that supports their pre-existing trading view"

"Traders objectively evaluate all available information"

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What is the antidote for 'Gambler's Fallacy' according to the text?

"Position Sizing"

"Technical Analysis"

"Market Timing"

"Fundamental Analysis"

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What is the primary driver behind the emotion of 'greed' in stock trading?

"Disproportionate desire for profits"

"Desire for Control"

"Aversion to Risk"

"Fear of Missing Out"