Hot-hand thinking: do wins make you feel unbeatable?

The hot-hand fallacy extends winning streaks into the future: "I'm on fire, the next one's guaranteed". The feeling produces oversized trades exactly when caution is needed.

Hot-hand thinking: do wins make you feel unbeatable? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your experience?

  • how winning streaks change your confidence
  • the oversized trade the streak produced
  • how you keep streaks in perspective
Hot-hand thinking: do wins make you feel unbeatable? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

The expectancy guide shows streaks are statistical, not personal.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…