Recency Bias: Your Brain’s Worst Trade Idea Ever!Let’s face it: your brain is out to sabotage your trading, and recency bias is its weapon of choice. This sneaky psychological gremlin convinces you that your last few trades—good or bad—are all that matter. But spoiler alert: they’re not.
🎲 What is Recency Bias?
Recency bias is your brain’s tendency to overvalue recent events and ignore the bigger picture. Three wins in a row? You’re invincible, right? WRONG. Three losses? Time to ditch your strategy? ALSO WRONG. The market doesn’t care about your streak—it plays the long game, and so should you.
💀 How It Destroys You
1️⃣ Winning Streak Confidence: After a few wins, you start upping your risk like you’re Warren Buffet. Then BAM—one loss wipes you out.
2️⃣ Losing Streak Paralysis: A few losses, and suddenly you’re too scared to pull the trigger, even on solid setups.
3️⃣ Revenge Trading: The currency pair that burned you? Oh, you’ll “get it back,” right? Nope. You’ll just lose more.
🛡️ How to Beat It
1️⃣ Reset Daily: Clear your head before every session. Meditate, walk, scream into a pillow—whatever works.
2️⃣ Stick to Your Plan: Your strategy works because it’s tested, not because your emotions say so.
3️⃣ Journal Everything: Spot your patterns before they wreck you.
4️⃣ Manage Risk: Winning or losing streaks shouldn’t change your position size. Period.
5️⃣ Check Your Ego: The market isn’t out to get you. It doesn’t even know you exist.
🧠 Final Words
Recency bias is a sneaky little troll, but with self-awareness and discipline, you can shut it down. Remember: your last trade doesn’t define you—your consistency does.
Now stop letting your brain gaslight you and go trade like the pro you were meant to be. 🚀
