A recent Binance Blog post dives into a crucial psychological aspect impacting traders: the illusion of control stemming from biases that shape trading behavior. The article examines the gambler’s fallacy, which leads to an expectation of market rebounds after dips, mimicking betting on rain after sunny days. In trading, this can lead to misinterpretations of market signals and a flawed risk assessment. Additionally, the self-attribution bias causes traders to overemphasize their wins while attributing losses to external factors, inflating their egos and fueling overconfidence. These biases contribute to a false sense of control, leading traders to rely on gut feelings instead of sound strategies and potentially incurring significant losses.