How to Avoid Hindsight Bias When Trading! 😯

Hindsight Bias http://www.financial-spread-betting.com/strategies/strategies-tips.html 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. Related Videos Avoiding Hindsight Bias When Trading! 😯 https://www.youtube.com/watch?v=-JE68HTvWdM 5 Common Biases That Impact Trading Decisions 😦😯 https://www.youtube.com/watch?v=SnuxLUMxD7w Selection Bias and Hindsight Bias in Charts and Trading Systems https://www.youtube.com/watch?v=OuPBrO3efNo How Overconfidence can Kill Your Trading 😑 https://www.youtube.com/watch?v=w-FY6YUGgfY Overconfidence. Stop being Overconfident when Trading! 😣 https://www.youtube.com/watch?v=F2-0hMW3gok How to Trade with Conviction and Avoid the Perils of Overconfidence 👊 https://www.youtube.com/watch?v=OYxa5hdNVXI Trade on a Hypothesis, Not Conclusions 👊 https://www.youtube.com/watch?v=1OsBFYsQ-UU