Trading Psychology | Learn to Take Losses 🧠
In this post, we will discuss a typical psychological mistake that a lot of traders frequently make.
🤑Analyzing different charts, we may spot a decent trading setup. Being 100% sure in our predictions, we open a trading position.
After some time, we are stopped out.
Instead of admitting that we were wrong, we are looking for a reason why it is not our fault: market manipulation, stop hunting, news.
Instead of reevaluation of our analysis, we start forcing our previous predictions.
🧠We open a position again, being sure that it is a perfect moment for us to recover the loss.
And we are wrong one more time. What the hell is going on? Who to blame? Of course, that is not us.
These ugly hedge fund managers again sunk our trade.
😢But we stay strong, we have a big trading account, so we decide to show this schmo who is a real pro here.
Consistency! That is the secret of success in trading.
So we open the third position again.
And... we screwed.
🤬Eureka! The market reversed! It's time to open the position in the opposite direction. The trend has changed, and it's time to get on board and recover this losing streak.
We open a trade, however, it's too late already: while we were forcing our previous predictions a new impulse has already gone exhausted.
That is a typical situation every struggling trader faced.
The psychological barrier to take the loss and admit the mistake makes many people leave this game.
The only way to proceed is to learn to take losses. Take losses and reevaluate your analysis.
"It's ok to be wrong. It's unforgivable to stay wrong!"