The Psychological Anchor Holding Back Your Profits
Want to know why you’re not making the profits you should be?
It’s not your strategy, your tools, or even the market.
It’s the psychological anchor in your mind holding you back.
We’ve seen how breaking free from this hidden bias transforms real traders’ results (screenshots and testimonials in our webinar prove it).
- ✅ Unlock better exits without second-guessing
- ✅ Stop clinging to “what it was worth before”
- ✅ Make confident, forward-looking trading decisions
Table of Contents
Introduction : Psychological Anchor
In trading, your biggest opponent isn’t volatility — it’s your own brain.
The most dangerous trap? The psychological anchor — the bias of basing decisions on past prices instead of present data.
Understanding Anchoring Bias: Stuck in the Past
Ever looked at a stock that once traded at ₹1,000 but is now ₹500 and thought, “It’s a steal!”?
That’s anchoring bias in action.
Instead of analyzing what the company is worth now, your mind gets fixated on what it “used to be.”
A trader assumes the stock will bounce back, ignoring market shifts and financial deterioration. They buy based on hope — not reality.
🔻 The Problem: Anchoring bias locks traders into outdated thinking, resulting in bad calls and emotional decision-making.
How Anchoring Bias Affects Traders
The psychological anchor leads to some of the most common — and costly — trading mistakes:
- Holding onto losing stocks : Refusing to sell at a loss because “it’ll come back.”
- Avoiding strong stocks : Hesitating to enter because the price already rose.
- Ignoring today’s fundamentals : Valuing stocks based on history, not present-day performance.
Real-World Example: The Case of Jet Airways
Let’s take Jet Airways — a textbook case of anchoring bias.
👉 Lesson: Price memory is not a trading strategy.
- Its stock once soared in triple digits.
- Even after it was grounded and financially unstable, many retail investors held on.
- Why? Anchoring. They believed it would “go back up.”
👉 Lesson: Price memory is not a trading strategy.
How to Overcome Anchoring Bias
Here’s how smart traders break free from the psychological anchor:
- Look at current fundamentals : Revenue, balance sheets, market outlook — not past price.
- Cut emotional attachment : A stock isn’t “cheap” because it dropped — it might just be broken.
- Focus on present value, not history : Today’s winners weren’t always winners — and vice versa.
The Stressless Trading Method (STM) by Dozen Diamonds
STM was designed to eliminate emotional trading and destroy biases like anchoring.
It uses real-time data to decide what’s worth your attention now :
🔍 Price-Agnostic Strategy
STM doesn’t care about past highs or lows.It uses real-time data to decide what’s worth your attention now :
- Evaluates trend strength & market momentum
- Makes calls based on present market direction
- Bypasses emotional traps tied to “memory prices”
📊 Dynamic Market Analysis
Anchored traders are stuck in the past. STM traders move with the market.- Risk-reward analysis updated in real-time
- Uses volatility patterns to time entries and exits
- Adapts fast to shifting conditions
⚡Adaptability Over Stubbornness
STM teaches you to:- Drop losing trades fast
- Ride momentum without fear
- Stop clinging to the past
Conclusion: Trade Based on Reality, Not History
Anchoring bias might feel subtle, but it silently kills profits.
The good news? You’re not stuck with it.
With Dozen Diamonds’ Stressless Trading Method (STM), you learn to:
- ✅ Ignore price memory
- ✅ Focus on live, real-time data
- ✅ Make emotion-free, high-probability trades
FAQ (Frequently Asked Questions)
What is anchoring bias in trading?
It’s a cognitive bias where traders fixate on past prices, leading to poor decision-making.
Why is anchoring bias dangerous?
It causes traders to hold onto losses, avoid good opportunities, and ignore market changes.
How does STM help fight anchoring bias?
STM relies on current market dynamics, momentum, and technical analysis — not price history.
Why do you call Stressless Trading?
DD App (KOSH App) is equipped with more advanced sophisticated tools & analytics. This tool will help investors to track their investment performances.
How does STM function?
To understand the details of STM, we request you as-need to be removed to sign up for the webinar. Our unique product details will be explained to you in the webinar. Please Login in to https://dozendiamonds.com/ to register for the webinar.
✅ Next Step: Break Free from the Anchor
🎓 Join our Stressless Trading Webinar this week.
Get insider insights, real case studies, and access to our WhatsApp Trading Circle — where traders learn to win without stress.
Get insider insights, real case studies, and access to our WhatsApp Trading Circle — where traders learn to win without stress.
