Trading Psychology Under Pressure

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Thematic analysis reveals how cognitive biases, including loss aversion and herd behavior, affect traders' decisions amid market pressure.

Loss aversion was prevalent, with most participants feeling discomfort with losses and seeking ways to recover.
Overconfidence varied significantly among participants, influenced by their previous trading experiences and results.
Many participants focused on easily accessible information, exhibiting strong availability bias during trading decisions.
Participants often rejected fundamental analysis, favoring familiar companies and standard indicators, demonstrating representativeness bias.

Finet et al. (2025) studied this question.

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Thematic analysis reveals how cognitive biases, including loss aversion and herd behavior, affect traders' decisions amid market pressure.