Ok so why does it feel worse when you sell and what you were in takes off than when you get hit for a loss on something. Had 1k SKF from 107's and sold 159's the other day and then was shaking my head on the rippage today.
Ok so why does it feel worse when you sell and what you were in takes off than when you get hit for a loss on something. ------------------------- They both should feel the same = zero feeling.
Its psychological. Check this out: Scenario 1 You are in trade and for some reason you ignore your stop, and began to take on a large loss. One hour before the close, you began to freak out because your trade is now $3,000 against you. But at the last trading hour, mkt begins to rally, and your loss shrinks to $2,500.â¦. Then $2,000, â¦. $1,400.. Finally, at the close, you are only down by $100 ! Scenario 2 You are in a winning trade, you donât adjust your stop⦠u decide to just let the trade run. By 3pm your are up $3,000. Then at the last trading hour, mkt takes a tumble⦠your winnings begin to shrink⦠$2500.â¦.$2000.⦠u refuse to close the trade⦠finally at the close your only up $100. Now, how do you fill at the end of the day for each scenario presented? On the 1ST scenario most people would be happy, not just happy but relieved they didnât have to eat the huge loss. On the 2ND scenario, most would be angry. Angry that they let just a huge win get away. But in actuality, you lost money on the first scenarioâ¦. Yet youâre happy, and the 2nd scenario you had a winning trade, but are angry. The emotions donât match the outcomesâ¦. See how hard it is to be unemotional? Emotions is what can ruin a trader before they even get a start. Itâs the greatest battle one will ever face⦠and one that has to be faced alone. Yet I see so many running to these inter-net gurus for answers.