What Are Some Practical Strategies for Overcoming Confirmation Bias When Trading Volatile Crypto Assets?

To overcome confirmation bias when trading volatile crypto assets, a trader should actively seek out dissenting opinions and information that challenges their own thesis. This can involve following analysts with opposing viewpoints, reading critiques of a particular project, or engaging in discussions with traders who hold a different perspective.

Another strategy is to maintain a detailed trading journal, where the rationale for each trade is recorded. This allows for an objective review of past decisions and helps to identify patterns of biased thinking.

Additionally, setting strict stop-loss orders and take-profit levels before entering a trade can help to automate the decision-making process and reduce the influence of in-the-moment biases.