Process and psychology
Growing size after wins
Retail forex traders raise size and trade count after gains and credit skill for luck.
Well documented
Found repeatedly in peer-reviewed work or regulator data.
Documented in retail forex data.
What it is
A study of retail forex accounts found trade size, size variability and number of trades rose after gains, especially among newer traders.
What it suggests
The Exchange checks both directions: trading after a loss and size creep after a winning stretch.
How to check it
Compare risk per trade before and after a winning week.
Common mistakes
- Treating a lucky stretch as proof.
Sources
- Ben-David, Birru and Prokopenya (2018), Uninformative feedback and risk taking: evidence from retail forex trading, Review of Finance 22(6) (citation and headline finding only)
Related lessons
Written in our own words. Education only, not financial advice.