Good morning, traders…

“I knew it.”

I hear this exact phrase in our chat room almost every week.

“I knew it was going to run.” “I knew that breakout was fake.” “I just knew I should’ve bought when it pulled back to $45.”

But “I knew it” is more dangerous than it sounds…

Hindsight is 20/20. When moves seem obvious after they’ve happened, you tend to believe your feelings before the trade were facts (even if they weren’t).

And if you start trading based on what you think you knew, you’re not trading the chart anymore … you’re trading your ego.

This psychological trap destroys more accounts than bad setups ever could. 

Because once you convince yourself you “knew” something would happen, you stop waiting for confirmation. 

You stop following your rules and start sizing up too early because you’re overconfident about the next move.

Let Me Show You Why “I Knew It” Is The Most Expensive Phrase In Trading…

Ego or Insight?

The moment you say “I knew it,” you’re rewriting history. 

You’re telling your brain a story about how smart you were before entering the trade. 

The problem arises when that story sticks in your head.

Your brain rewards itself. Dopamine fires off. Confidence goes up. 

Instead of waiting for confirmation or sticking to your rules, you jump into the next trade early.

I’m not saying your gut is worthless. Intuition can be a valuable indicator.

After a few years of trading, your instincts will sharpen. Pattern recognition will become second nature. You’ll start seeing setups before they fully develop.

But instinct without discipline is just guessing with extra confidence.

You need a filter between what you think you know and what you actually trade. 

Otherwise, every hunch feels like insight, and every insight demands action.

That’s your ego rearing its ugly head. And ego trades can be very expensive (if you don’t know how to avoid them).

4 Ways To Trade the Plan (Not the Feeling)

Here’s how to work with those “I knew it” moments without letting them sabotage your trading:

Write It Down Before You Trade It

Think you know where a stock will go? Write it in your trading journal with specific levels. If it plays out, great. You had a reason, not just a feeling. If it doesn’t, you have data showing your instinct was wrong.

Track the Wrong Guesses Too

You thought it would bounce at $412? It dropped to $405 instead? Log it. You learn more from misses than hits. Your ego wants you to forget the wrong calls and remember only the right ones.

Use Alerts, Not Hunches

If you think a chart will move past a certain level, create that alert. Don’t force a trade just because you’re confident. Let price prove you right. Patience is free, but impatience costs capital.

Be Honest About What You Don’t Know

The traders who win year after year know that being right once doesn’t mean you’ll be right next time. 

Every trade starts from zero. Leave yesterday, last week, and last month in the past.

Your last win doesn’t predict your next one.

Want to learn how to execute trades like this?*

The best place to start is in our Smart Money Workshops.

You’re one click away from the best setups in the options market. 

Join us TODAY at 12:00 p.m. EST.

Happy trading, 

Ben Sturgill

*Past performance does not indicate future results