Continue reading...
The trades you enter after being in a losing streak or a winning streak are often very different to the trades you make when neutral.
Winning streaks can cause us to be overconfidence and make rash decisions, ignoring obvious red flags because we over-inflate our skills and intuition.
Losing streaks can cause the loss aversion bias to come into effect, where we put more weight on avoiding a loss than getting a win, causing erratic and rev...