OlalekanTheFirst🤴🏽

Beginner lesson: The illusion of control (clip) We all know a trade can lose. So why do we sometimes feel that if we analyse the chart for long enough, we should be able to tell exactly what price will do next? Think of a thermometer. It tells you the temperature of the room at the moment you check it. If the readings have been rising all morning, you might reasonably expect the room to be warmer in a few hours. But even if you check it ten more times, each reading still only tells you how warm the room is at that moment. Those readings can inform your expectation. They can’t tell you for certain how warm the room will be three hours from now, and they have no influence over what that temperature will be. A price chart works the same way. It records how price has moved. You can study that movement, form an expectation, and use it to decide whether to take a trade. However carefully you’ve read the chart, the market can still move against you. That sounds like common knowledge. But we sometimes behave as though we do not have this understanding: we check another timeframe, get another confirmation, then risk more than we planned because this one looks too good to lose. We say we understand uncertainty, yet we act as though doing more analysis has given us more control over the outcome. That is a flawed approach.