It has been proven that people become less risk averse after a winning trade or a series of winning trades, and more risk averse after a losing trade or series of losing trades, even if they are following an effective trading strategy to the T. This is a BIG mistake; there is no logical reason to become less risk averse after a winning trade or more risk averse after a losing trade, because your previous trade does not determine the outcome of your next trade. • In reality, you aren’t any more likely to win after a winning trade or lose after a losing trade, assuming you are strictly following your trading edge / trading plan.