🧠 Did you win by strategy or by luck? The bias that deceives the trader
In trading, a profitable trade does not always mean a good decision. This phenomenon is called "outcome bias," and it occurs when the brain evaluates decisions solely by the outcome, ignoring whether the analysis was solid or impulsive. The danger: a bad trade with a positive result can reinforce bad habits, while a well-planned but losing trade can generate unjustified doubts.
This bias is fueled by dopamine, which rewards immediate success without measuring the quality of the process. In the long run, this distorts your perception of risk and pushes you to repeat impulsive behaviors. The professional trader recognizes this mechanism and develops a "process mindset": evaluating decisions based on logic and consistency, not on short-term profits. That approach is key to achieving emotional and financial sustainability in the markets.
Neurofinance Today,
Ohana 💙
