Are You A Victim Of The Recency Bias When Trading? Part 2

Cognitive biases can negatively affect our decision making, especially when it comes to trading and investing

Both doubt and psychological distress are part of our hypothetical trader’s reality.

In struggling with the despair of coming down from the high of a six month winning streak by posting nothing but losses for a month, she is unable to take a mental step back and assess her situation without panicking about something being direly wrong.

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