🧠 PSYCHOLOGY #14: RECENCY EFFECT - SHORT TERM MEMORY
BTC fell for 3 consecutive days.
You: "BTC ONLY FALLS. I'm going to sell everything."
(Ignoring that it rose 40% in the previous month)
🧠 WHAT IS:
Recency Effect = Giving DISPROPORTIONAL weight to what happened RECENTLY.
Your brain remembers MORE of what is recent.
Forgets the bigger context.
📈 IN TRADING:
• 3 consecutive losses → "My strategy doesn't work!"
• (But you had 20 wins before)
• BTC pumped yesterday → "It's going to $200k!"
• (But it's been in a bear market for 6 months)
⚠️ THE DANGER:
Decisions based on "now" ignore REAL TREND.
💡 THE SOLUTION:
ZOOM OUT. Look at the monthly chart.
Look at your history of 100 trades, not the last 3.
Recency is an optical illusion of time.
Have you ever changed strategy due to 2-3 losses?
Comment below.
$BTC $ETH $BNB #TradingPsychology #RecencyBias
BTC fell for 3 consecutive days.
You: "BTC ONLY FALLS. I'm going to sell everything."
(Ignoring that it rose 40% in the previous month)
🧠 WHAT IS:
Recency Effect = Giving DISPROPORTIONAL weight to what happened RECENTLY.
Your brain remembers MORE of what is recent.
Forgets the bigger context.
📈 IN TRADING:
• 3 consecutive losses → "My strategy doesn't work!"
• (But you had 20 wins before)
• BTC pumped yesterday → "It's going to $200k!"
• (But it's been in a bear market for 6 months)
⚠️ THE DANGER:
Decisions based on "now" ignore REAL TREND.
💡 THE SOLUTION:
ZOOM OUT. Look at the monthly chart.
Look at your history of 100 trades, not the last 3.
Recency is an optical illusion of time.
Have you ever changed strategy due to 2-3 losses?
Comment below.
$BTC $ETH $BNB #TradingPsychology #RecencyBias