Recency bias makes the last trade or last week feel more representative than the real sample.
In plain terms — After three wins you size up; after three losses you abandon the plan. The market does not «owe» you a continuation of the last streak.
Overweighting recent events vs history and statistics.
Recency bias makes the last trade or last week feel more representative than the real sample.
In plain terms — After three wins you size up; after three losses you abandon the plan. The market does not «owe» you a continuation of the last streak.