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The lie on the right side of the chart, and how it spoils your learning
Published by The Retail Trader · JUL 23, 2026 · Trading Psychology
Looking at an old chart, both the entry and the exit seem clear. That clarity comes from the fact that you know what happened next — and at that time nobody knew.
Hindsight forces you to believe that the market was predictable and that you made a mistake. Two things follow from that thinking — confidence rises in the wrong place, and you get angry at yourself.
It also spoils learning. You remember the setup that worked, and forget that on that day it looked just like ten other setups.
There is only one way — keep your decisions in writing:
• Write the reason before the entry, not afterwards.
• Along with it, write what would make this wrong.
• Keep a screenshot of the chart as of the time of entry, not the whole chart.
• In review, read only what was written at that time.
When backtesting, covering the chart from the right and moving forward is an old method and it is still the most honest. Any system built while looking at the chart ahead is itself a hindsight product.
This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed from time to time by the exchanges, SEBI and RBI, so verify every number yourself with your broker or an official source.