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Psychology

Confirmation Bias

The tendency to search for, interpret, and recall information that confirms preexisting beliefs. In memecoin trading, the X algorithm and Telegram group dynamics act as structural amplifiers — the feed curates to match existing positions, not to challenge them.

See also
Culture Parasocial Relationship A one-sided perceived intimacy with a media persona (Horton and Wohl, 1956). In CT: the follower experiences a relationship; the KOL operates a broadcast. The parasocial bond makes followers buy faster (trust collapses the deliberation window), hold longer, and refuse counter-evidence. → Psychology Hindsight Bias Perceiving past events as having been predictable after the fact. Documented by Fischhoff (1975) as creeping determinism. In trading, it corrupts post-mortem reviews by replacing actual pre-outcome reasoning with what would have been correct — making learning structurally impossible without a contemporaneous written record. → Psychology Reactor (Archetype) The trader archetype anchored to feelings and PnL. Identity collapses with the bag — a green day means 'I am a good trader,' a red day means 'I am a bad trader.' Time horizon compresses to the next five minutes. Re-learns the same lesson on a six-week loop indefinitely because there is no record. →
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