Over Confidence

Over ConfidenceLesson 9 of 96 min read

Nothing new is new

The second engine of over-trading is novelty, most of it is renamed material, and the days when a lucky win does the most harm.

Overconfidence has a second supply line, and it is not a winning trade. It is a new strategy.

Renamed, not invented

Most of what circulates as a new method is old material with a fresh label on it.

Something presented as a named pattern turns out to be a fair value gap with a time window attached. Something else is an order block described in different words. The names change quickly. The number of underlying ideas barely moves.

A new name is usually an old idea wearing it.

Why the novelty is the danger

Notice when the appetite for a new method appears. It is strongest right after a bad run.

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