You’re Only as Good as Your Last Trade
['Nial Fuller']
Learn To Trade The Market
As that last trade’s results permeate your brain, depending on whether you are trading properly and (or) are mentally prepared to deal with your last trade’s results, you may be at serious risk to getting stricken with this trading ‘disease’. As I discuss in my article on the topic of recency bias in trading, a trader has recency bias when they focus too heavily on their most recent trading decisions / trades and lose perspective on the bigger picture. The implications of this are, traders may increase risk size on their next trade above what they are comfortable with losing and (or) they may enter increasing number of trades that violate their trading plan / trading edge.