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Psychology
This page shows cognitive bias scores — how much the market is being influenced by irrational thinking patterns. It's like a checkup for market psychology.
What Are Cognitive Biases?
Cognitive biases are mental shortcuts that lead to irrational decisions. In investing, they cause people to:
- Buy a stock just because it's going up (FOMO)
- Sell in a panic when prices drop (loss aversion)
- Ignore news that contradicts their opinion (confirmation bias)
FIN tracks 12 biases and scores how strongly each one is present in the current market.
The 12 Biases at a Glance
| Bias | When It's High, It Means... |
|---|---|
| Loss Aversion | People are more scared of losses than excited about gains — they might sell too quickly |
| Herding | Everyone is following the crowd instead of thinking independently |
| Recency | Recent events are being treated as more important than long-term patterns |
| Confirmation | People are only paying attention to news that matches their existing view |
| Anchoring | Everyone is fixated on a specific number or price level |
| Overconfidence | Traders are taking excessive risks, believing they can't be wrong |
| FOMO | Fear of missing out is driving buying pressure |
| Disposition | People are selling their winners too early and holding losers too long |
| Narrative | A compelling story is moving the market more than the actual data |
| Ambiguity Aversion | Investors prefer bad-but-known outcomes over uncertain ones |
| Availability | Recent dramatic events are being seen as more likely to happen again |
| Regret Minimization | People are frozen — avoiding any action that might later cause regret |
How to Read the Scores
Each bias gets a score from 0 to 100:
- Low (0–30): The bias is barely detectable
- Medium (30–60): Some influence, but not dominant
- High (60–100): Strong bias — likely affecting market behavior
Bar Chart
The chart at the top shows average scores for each bias over the selected time period. Taller bars = stronger bias presence.
Data Table
Each row is a snapshot at a specific time. Click Reasoning to see why the AI scored each bias the way it did.
Why This Matters
High bias scores can signal market turning points:
- FOMO and Overconfidence spiking → market might be at a top (everyone is bullish)
- Loss Aversion and Regret Minimization spiking → market might be at a bottom (everyone is scared)
- Herding together with Narrative bias → a trend might be over-extended
What to Do
- Check psychology before big moves — if loss aversion is high, a dip might accelerate
- Look for divergence — if prices are rising but FOMO is low, the rally might be cautious
- Use it as a sanity check — when you feel emotional about a stock, see if the biases confirm it

