What is the first perception bias listed in the four types of perception biases?

The first perception bias listed among the four types is saliency. Saliency bias refers to the tendency of individuals to focus on information that is prominent or noticeable while ignoring less conspicuous data. This cognitive bias can significantly affect decision-making, as it can lead to an overemphasis on information that stands out, potentially skewing an individual's perception of events or trends in the market. Understanding saliency is crucial for analysts and traders, as they must be aware of what may be "highly visible" and how that visibility may distort their perception of risk and opportunity.

While options such as framing, anchoring, and sunk-cost bias are also important cognitive biases that impact decision-making, saliency is foundational in the context of how individuals first perceive and process information before considering other biases that come into play. Familiarity with these biases helps traders and analysts develop a more comprehensive understanding of market movements and the psychology of other market participants.