Before we move on, it's important to note that the best way of avoiding unnecessary risk when trading is to use a risk-free demo trading account. With a demo account you can trade on the live markets without putting your capital at risk, meaning that you can practice and get on top of your emotions, so that when you are ready to transition to the live markets, you have already conquered the biggest obstacles! To open your FREE demo trading account, click the banner below!

The problem is that this is where traders are most likely to succumb to overconfidence bias. It's not uncommon for traders to complete a winning streak and then believe that they can't get anything wrong in the future. To believe this is of course unwise, and is only going to end in failure. Make sure you always analyse your trading sessions and look at your wins and losses in detail.