Glossary › overconfidence

Trading glossary · psychology

overconfidence

Feeling too sure of yourself after some wins, so you take bigger or sloppier risks.

The fuller meaning

Overestimating one's skill or edge, typically after a winning streak. It leads to size creep, skipped checklists and low-quality setups; the lessons keep size and rules steady after wins, because a hot streak over a small sample is mostly luck.

overconfidence.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion