Reflexivity, a concept from George Soros, is the feedback loop in which participants' beliefs change the very reality they are observing — rising prices attract buyers, which pushes prices higher, reinforcing the belief. The loop eventually breaks when the narrative runs out of new buyers and reality fails to confirm expectations, often violently.
This term belongs to Trading psychology. See how it fits the bigger picture in The Mind, part of the free DEGEN ACADEMY — or watch it play out on the live terminal.
FAQ
What is Reflexivity?
Reflexivity, a concept from George Soros, is the feedback loop in which participants' beliefs change the very reality they are observing — rising prices attract buyers, which pushes prices higher, reinforcing the belief. The loop eventually breaks when the narrative runs out of new buyers and reality fails to confirm expectations, often violently.