Unit 2 · Level 1 · Cognitive biases
Review: debugging the firmware
This unit's field guide: loss aversion (losses hurt ~2x, so frames manipulate you), confirmation bias (you find what you search for), recency and anchoring (old numbers impersonating truth), and overconfidence (feelings inflating faster than results). None of them can be uninstalled, but all of them can be outvoted by rules and records.
Free to play. No ads, no token, no account needed to start.
What you get asked
Match the bias to its one-line definition
Five names for one theme: the brain optimises for comfort, not accuracy. Markets charge for the difference.
You mute every account that criticises your favourite stock. Which bias is at the wheel?
Curating your inputs to protect a conclusion is confirmation bias in its purest form. You're building the echo chamber by hand.
'I'll sell when it gets back to what I paid' is ___ to your entry price.
The market doesn't know your entry. Unit 1's hope demon and this unit's anchor are the same trap seen from two angles.
You're down 20% overall. A friend says 'just make 20% back and you're even.' What's wrong?
From €10,000 → €8,000, getting back needs €2,000 on an €8,000 base: 25%. Drawdown math punishes optimistic rounding.
The shared antidote to every bias in this unit:
Biases live in feelings and vanish under arithmetic. Rules, journals, and base rates: the boring stuff is the armour. 🐜
The rest of this unit
Loss aversion, echo chambers, anchors, hubris: the bugs in everyone's mental firmware.