DUNNING - KRUGER EFFECT
The Dunning-Kruger effect in online trading occurs when inexperienced traders overestimate their skills. After acquiring basic knowledge or experiencing some initial success, they believe they have mastered the markets, ignoring the real complexity and risks. This leads them to make impulsive decisions or take excessive risks. Only with accumulated experience and the recognition of their own limitations do traders develop greater awareness, recalibrating their initial confidence and improving their strategies more rationally.
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