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The Dunning-Kruger Effect

The Dunning Kruger effect is a cognitive bias those with low ability, knowledge, or expertise tend to overestimate their own skill level, while those with high ability, knowledge, or expertise tend to underestimate their relative competence. 

I had been trading for several years, studied for hundreds of hours, and had made thousands of trades. Yet, I ended up experience the largest % drawdown of my trading career precisely at this point. What happened? The Dunning Kruger effect is a MUST KNOW concept for traders (or people building any skill). There's a delicate period of time where we know just enough to hurt ourselves and are ripe for our own destruction.

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