Advanced trading tip
A lot of trading mistakes is due to having too HIGH expectations for big results. This causes stress, anxiety, poor judgement and overconfidence.
This can happen in 2 ways:
1. You lost money now you want to make it back.
*Well, then you start to force trades, revenge trade, take big positions and make a bunch of other mistakes.
2. You made a lot of money now you think you are unstoppable.
* You got lucky a few times so now you think you don't need to manage risk, increase position size and double your money.
🔑Takeaway
* Stay focused and keep calm at all times.
* Continue improving trading system and process
* In the middle of trading don't change your process only do it afterwards when you review.
* Consistency is what you are striving for as a trader nothing else (yes, nothing else).
Overconfidence bias is the tendency to overestimate our knowledge and abilities in a certain area. As people often possess incorrect ideas about their performance, behavior, or characteristics, their estimations of risk and success often deviate from reality.
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