Overconfidence
Explore fear, overconfidence, revenge trading and emotional decision-making.
Overconfidence
A short winning streak may create an exaggerated sense of skill. Avoid escalating size solely because of recent outcomes. Compare decisions with a pre-defined process and include the role of chance.
Example
Five wins do not establish a reliable probability of success for the next trade.
All educational content is provided for general information and educational purposes only. It does not constitute investment advice, financial advice or a recommendation to buy or sell any financial instrument. Trading leveraged products involves significant risk and may result in the loss of invested capital.