Road To A Million

Recency Bias: Your Brain’s Worst Trade Idea Ever!

Recency Bias
image representing recency bias

Recency Bias: Your Brain’s Worst Trade Idea Ever! by RoadToAMillionClub on TradingView.com

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

Winning Streak Confidence: After a few wins, you start upping your risk like you’re Warren Buffet. Then BAM—one loss wipes you out.

Losing Streak Paralysis: A few losses, and suddenly you’re too scared to pull the trigger, even on solid setups.

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

Reset Daily: Clear your head before every session. Meditate, walk, scream into a pillow—whatever works.

Stick to Your Plan: Your strategy works because it’s tested, not because your emotions say so.

Journal Everything: Spot your patterns before they wreck you.

Manage Risk: Winning or losing streaks shouldn’t change your position size. Period.

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.

Don’t let recency bias win—join our Discord and trade like the consistent pro you’re meant to be!

Click here to read our latest article: Why All-in Risks Will Wreck You!

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