How to Avoid Hindsight Bias When Trading! 😯

Описание: Hindsight Bias http://www.financial-spread-betting.c... PLEASE LIKE, SUBSCRIBE AND SHARE THIS VIDEO TO SUPPORT US. Let's see how traders suffer from confirmation/hindsight bias. Bias Hindsight Bias is when someone says 'I always knew that would happen' whether its something you've actually traded or something you didn't trade but you knew what was going to happen...OK.

What is an example of hindsight bias? How do you avoid the hindsight bias? We can look at financial crisis, bubble bursts like the Dot-Com or Bitcoin bubbles. The problem with this is that you don't give the opportunity for you to learn.

If you knew it was going to happen why didn't you capitalize on it by placing a trade? Hindsight bias is dangerous as it can cause us to be overconfident and prevents us from taking responsibility for our own mistakes.

How do we improve this? The first thing is to document our decision-making process; if you do that then we can look at the trade objectively and understand why you reached that decision.
We know it feels good to be correct but its important to objectively assess the outcome based on the decisions you reached and then what actually happened.

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