Atlas of Cognitive Biases #47 · Time, emotions and state. Now weighs more than later
What it looks like in trading
closing a position for immediate relief instead of following the plan
skipping the journal because the payoff is delayed
trading for the thrill instead of learning on replays
An example from a session
In the evening the trader plans: “tomorrow I'll only wait for my setups”. The next day at 9:35 AM they jump into the first move, because waiting is unpleasant now and the payoff from patience will only come later.
What the research says
Richard Thaler (1981) showed that the required “reward for waiting” is much higher for short delays than for long ones. George Ainslie (1975) and David Laibson (1997) described this mechanism as a source of time inconsistency: plans made from a distance lose to the moment.
We value immediate rewards disproportionately more than later ones. From a distance we choose sensibly; up close, “now” wins. Also known as present bias.
How does hyperbolic discounting show up in trading?
Typical signs: closing a position for immediate relief instead of following the plan; skipping the journal because the payoff is delayed; trading for the thrill instead of learning on replays.
Educational content, not psychological advice or an investment recommendation.