The CLEAN Trader Podcast – EP044 – Recency Bias

how to pick stocks

Why when we look at the 8th trading signal do we allow the outcome of trades 1 to 7 to influence our decision? Because your perspective changed. It was coloured by your experience of the previous 7 trades. This is highly illogical decision making behaviour and it costs traders thousands in missed opportunities. This week we explore this common psychological bias and discuss how to get around it in order to improve your trading results.

The CLEAN Trader podcast was created by active trader Chris Chillingworth to share insight, ideas, tips and experience on how to improve as a mechanical systematic trader. Self described as a british bearded trader who likes rock music, wine and formula one racing.

Mechanical Systematic trading is a strategy that does not make predictions on the stockmarket, but instead looks at reacting to what the price of a market is actually doing. There is no attempt to be right, on the contrary, mechanical system traders expect to be wrong most of the time. They focus on killing losses quickly and letting winners run to ensure profitability.

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► Subscribe to my Youtube channel here: https://www.youtube.com/user/spreadbetbeginner
Chris Chillingworth is a systematic mechanical trader, trading and spreadbetting stocks, indicies, commodities and forex markets using mainly End of Day Trend Following Trading systems.
Chris is the host of the The CLEAN Trader Podcast, a show dedicated to Trend Following strategies, as well as The Spreadbet Beginner Podcast, a show dedicated to Financial Spreadbetting using Trend Following techniques, with both shows reaching over 150,000 downloads and counting.
Chris has been coaching both beginners and experienced traders since 2014 and has so far helped over 1500 traders and spreadbetters improve their results. Chris provides online video courses to help traders understand what they really need to know in order to become profitable and has always championed that your psychology is more important than your mechanics.
Chris also runs a one to one coaching service called the Inner Circle, details of which can be found on his website.
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About Chris Chillingworth

Self confessed lover of racing, american football and whiskey. Trader and Investor since 2011. Chris has now coached over +1500 traders using his mechanical systematic trading strategies and now also runs a members only watchlist of FTSE stocks.

View all posts by Chris Chillingworth

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