Invariably the enemy will pull a surprise on you - and it is how you react to it which is key. The markets will do this - that much you better count on. Therefore, work on your ability to withstand losses and not lose your focus. Otherwise, you end up in the summation of Tzu's wisdom: know neither yourself nor your enemy - YOU WILL BE LOST. https://www.elitetrader.com/et/threads/sun-tzu-art-of-trading-war-the-edge.304608/
Trading Education Buyer, Thank you very very much. Your contribution, advice, and resources are well appreciated. Thanks for sharing.
When you put on a revenge trade ,it is usually done by the subconcious , emotions and under stress. You feel you are doing the right thing i.e make money , so losing after a losing trade or even a slight move against you is NOT DOING THE RIGHT JOB SUCCESFULLY. , in order to do the job correctly , you need to add a position to average down or make money on a second position , to make profit. Forget about making money , train your brain to subconciously think TO DO THE JOB CORRECTLY. Your emotions make you feel good , if you can take something from the market , rather the opposite , your emotions will drive you for feel good and revenge , because revenge makes you feel good.Revenge is also doing the right thing. The third cause of trevenge trades is stress response , your subconcious brain has 3 options , any of them will be triggered i,e fight (revenge) , flight (take a loss) or freeze (do nothing). These processes lead to revenge trading. Fight-or-flight response. The fight-or-flight response (also called hyperarousal, or the acute stress response) is a physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival. It was first described by Walter Bradford Cannon. https://www.google.co.uk/webhp?sour...TF-8#q=stress+response+fight+flight+or+freeze