The article is a continuation of a series of texts analyzing risks and opportunities in the energy market. In this part, we focus on cognitive errors that can affect the decisions of investors and managers. The article presents various types of cognitive errors, such as overconfidence and anchoring effect, and explains how they can impact risk assessments as well as buying and selling decisions in the energy market.

The article discusses how the lack of a precisely defined risk profile and management strategy can lead to large and unforeseen financial losses. It also analyzes how different methods of calculating positions and a lack of understanding of market specifics can affect trading results. The author suggests how to minimize the risk of poorly constructing a strategy and how to better monitor one's market positions.

The article addresses the topic of risk in the energy industry and trading on the energy market, using the example of operations on the Hungarian HUPX market. In this article, we focus on the internal risk factors.