The law of small numbers | My next trade setup 
2025-02-12
Category: None

In today’s video, we dive into the Law of Small Numbers—a psychological trap that prevents many beginner traders from reaching their full potential. Our minds naturally seek patterns, often seeing what we want to see in the charts rather than what’s actually there. This can lead to false confidence in strategies that only work under specific conditions or don’t work at all.

We also take a look at Bitcoin’s current price action and plan our next trade based on market structure and key levels.

What Beginner Traders Should Do:
✅ Extensively backtest strategies over a large dataset
✅ Focus on objective market structure instead of emotions
✅ Maintain a trading journal to track real results
✅ Understand statistical probabilities in trading

What Beginner Traders Should NOT Do:
❌ Rely on a small number of trades to judge a strategy
❌ Chase patterns that aren’t statistically valid
❌ Ignore risk management and proper position sizing
❌ Let emotions dictate trading decisions

By recognizing these biases, you can develop a disciplined, data-driven approach to trading. Watch the full video to learn how to avoid these common pitfalls and see how we’re positioning for the next Bitcoin move! 🚀