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Self-attribution bias, and how it blocks learning
Published by The Retail Trader · JUL 29, 2026 · Trading Psychology
When you make a profit, it feels like your analysis was right. When you take a loss, it feels like the market was manipulated or the news came out of nowhere. This is a natural pattern, and it blocks learning completely.
If every win is skill and every loss is bad luck, there is nothing left to improve. The feedback loop breaks.
There is also the opposite form: treating every loss as a personal failure. That is just as wrong, because even a good decision can produce a bad outcome.
Grade every trade on two separate questions:
• Was the decision within my rules: yes or no.
• Was the outcome good: yes or no.
• A good decision with a bad outcome is a normal combination.
• A bad decision with a good outcome is the most dangerous combination.
Pay the most attention to trades that made a profit while breaking the rules. Those trades teach the most and get reviewed the least, because the result was good and so nobody asks any questions.
This article is for educational purposes only. It is not a buy or sell recommendation, not a claim of guaranteed returns, and not advice. Rules, rates and mechanics change from time to time at the exchanges, SEBI and the RBI, so verify every number yourself with your broker or an official source.