House money fallacy ruins compounding. Winnings become account capital; adjust risk accordingly.

Lastly, we have house money. This is the idea where you just won a bunch of trades, right? Okay, well, my trading account just grew up basically playing with house money. Let me take all this money I made in the last three wins and put it all in on the next trade. This is going to kill your ability to compound. The moment you close that trade and that money is part of your account, it's no longer house money because your 1% is now 1% of a bigger number. So don't throw out your math and size up because you feel like you're playing with a free role. All of these feeling based reasons to size up, I haven't named them all here. There's going to be a bunch of them usually are going to get you annihilated.