This may be the first time you have heard of the concept Cluster Illusion. Do not feel bad about that. Up until about 4 years ago, I had not heard of it either. Growing up, psychology and mental health were never openly discussed in my Southern Baptist household.
It was not until well into my 30’s that I became aware of my depression and social anxiety. As soon as I began to take personal responsibility for them and began to work on them (thru pattern awareness and pattern interruption) did I find victory over them.
My goal is to bring awareness to this bias, and point out how it may be having a negative affect on your trading, without you even knowing about it.
Let’s dive in.