House Money Cognitive Bias - futures io
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House Money Cognitive Bias

A cognitive bias relating to profits from an investment or trade(s). Greater risk is associated with profits earned above initial account balance as normal parameters are altered due to the sense or feeling that this is in reality "house money". Meaning, not really the traderís money (although it resides in the traders account) and therefore not taken as seriously as perhaps it should be.
This undermines a traderís goals and can lead to self-sabotage born from a belief that some portion of money inside oneís trading account is not even really theirs.

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