Not only does this explain why people tend to get careless and make stupid trades with the money they’ve made from winning trades, it also helps us explain why people make stupid trades following a losing trade. The point is this…you trading edge has a random distribution of winners and losers, which means you don’t know the winning percentage of any one trade, even though you may indeed know the OVERALL winning percentage of your trading edge over a series of trades. Breaking your bigger long-term trading goal into smaller more achievable goals will work to both improve your trading as well as your trading account, all the while increasing your trading self-confidence.