Why Winning Streaks Can Be Dangerous

Three consecutive wins can sometimes hurt your trading more than three losses.

After a winning streak, confidence rises.

You may start believing your market read is unusually accurate, so you increase your size or take setups that don't meet your criteria.

But a short winning streak doesn't prove that your edge has improved.

The next trade still carries uncertainty.

I prefer to keep my risk rules consistent and evaluate performance across a meaningful sample.

Winning should reinforce good habits, not encourage reckless behavior.

The objective is not to feel invincible after a few profitable trades.

It's to maintain the same decision-making standards regardless of recent results.