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Hindsight bias

The feeling, after the fact, that an outcome was obvious and predictable, which makes past trades look like clear mistakes or easy wins.

Charts are easy to read from right to left. Hindsight bias leads traders to punish themselves for losses that were reasonable decisions at the time and to rewrite their rules after each outcome.

Screenshots taken at the moment of entry, stored in the trading-journal, are the only defense: they show what you actually knew.

Example: a trader reviews a losing trade and sees the reversal was obvious. The screenshot from the entry shows a clean setup with no sign of the news that caused the reversal.

Related: confirmation-bias, process-over-outcome, trading-journal, survivorship-bias

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