The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again at optionalpha.com and welcome back to the daily call. Today, we are going to be talking about why recency bias is killing your potential to be successful. This one is a popular one for me and one that I am truly fascinated with. I continue to be fascinated the longer and longer I run Option Alpha with just the psychology of most investors and the psychology of trading, in particular, how it affects options trading and how people become successful or not trading. Recency bias I think is one of the true, true silent killers of options traders. The whole idea of recency bias is that recent events or past events are going to affect our new decisions that we make. The reality is that we all know and we’ve talked about before that we are creatures of habit. Our brains are hardwired to do things that require less cognitive strain on our brains. We get up in the morning and we tie our shoes the same way. We go to work the same way. We brush our teeth the same way. We are creatin