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 made thousands of trades. Yet, I ended up experience the largest % drawdown of my trading career precisely at this point.

 

What happened? The Skill Gap Peak. 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.