Being aware of these cognitive errors in Technical Analysis is crucial to becoming a successful trader. It's all about training your mindset 🙏  

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Conservatism bias: too little weight given to new information  Your prior beliefs are not modified as much as new information warrants. You conserve prior beliefs. i.e. despite signs that the economy starts to emerge from recession you remain pessimistic and underinvested in equities.  Confirmation Bias: an investor’s beliefs become more extreme over    time. Confirmatory information is given more credence, contradictory info not believed.  i.e. any negative news validates your negative bias.  

Anchoring: an individual’s inability to sway from initial estimates, forecasts, opinion, personal biases (an anchor) even if they are irrelevant and not evidenced based, sizing a prediction based on numbers previously given. Anchoring is usually to a story, starting value of account size, anchoring yourself to your purchase price (inconsequential), anchoring to target price Ex: Anchoring to compelling emotional stories, numbers (your break even price,  initial account balance, price targets set by analysts, prior highs, your account values) **It is my experience that this is probably the biggest factor leading to investment loses  

Optimism / Overconfidence: Investors are generally overconfident about the quality and precision of their knowledge. i.e. analysts, portfolio managers, and traders.  Crime of small numbers: using too small of a sample size to draw a conclusion resulting in two judgment errors: 

Gambler’s fallacy: occurrence of a positive streak does not alter the probability of the next event. Example: coin toss Gambler’s fallacy: coin toss stays 50% even after tails 20 times in a row 

Clustering illusion: Misperception of order, when the outcomes are truly random, a few events in an ordinary streak in a random walk get interpreted for a trend change  i.e.: a trend of black  numbers being drawn in roulette.  Imitative behavior / herding: looking at behavior of others for cues.  

People look at the behavior of others for cues and imitate their actions. Investors making the same mistakes result in prices that systematically diverge from rational levels i.e.: buy stocks that Warren Buffet and Carl Ichan buy. Information cascades: chain of imitative behavior initiated by the  (random) action of a few.  Random behavior can trigger imitative behavior resulting in long duration price swings. This is caused by a feedback loop  #TechnicalAnalysis