What is the psychology of "selling at the bottom" for a loss

Discussion in 'Psychology' started by mute9003, Oct 13, 2022.

  1. Sprout

    Sprout


    What states did you experience before, during and after the trade?

    Where did you enter and exit?


    Wall-Street-Cheat-Sheet.png

    You are conditioned to be exit liquidity.
     
    #121     Oct 14, 2022
    murray t turtle likes this.
  2. Handle123

    Handle123

    Lack of knowledge and that is why those who have spent lifetime playing the game do well and other 98% dream.
     
    #122     Oct 14, 2022
  3. panzerman

    panzerman

    This cycle chart is kind of BS. Since low and high are relative and not absolute (except for zero), and the fact that price structure is fractal to some degree, these cycles could apply at any time scale.

    Maximum opportunity could exist at any price depending on what happens in the future, which nobody knows unless you are perhaps in the latency arbitrage business. Is a pullback a pullback or a trend reversal? An eternal question.
     
    #123     Oct 14, 2022
  4. schizo

    schizo

    Not only that, but how many people will sit out the entire cycle? Only Warren Buffet and his acolytes would do that, and they won't give a shit about all these psychobabble anyway.
     
    #124     Oct 14, 2022
    murray t turtle likes this.
  5. Businessman

    Businessman

    Yes, those chart emotions also play out on the intra day time scale as well, especially when a day trader is very emotional. I mean during a losing streak.

    If a losing day trader happens to catch a fast trend early in the day only to see it reverse mid day, most of those emotions could be felt.
     
    #125     Oct 14, 2022
  6. destriero

    destriero

    So this r*tard was ended on a $10 bet over genitalia? THAT was the final straw?


    #cognitivedissonance
     
    #126     Oct 15, 2022
    SunTrader likes this.
  7. KGTrader4

    KGTrader4

    I didn’t read the whole thread, just a couple of pages, so maybe this has already been said. You need to have an exit plan at the moment of entry. When you sell shouldn’t be discretionary, especially based on what you say is happening.. ask yourself….

    how much of my capital am I willing to lose, max, on any one position.
    Then, to what price does this position need to drop, for me to be at my max loss
    Then, put in a stop at that point. Period. Full stop. End of story. Sometimes you will find you sold just before the reversal. But more often, being stopped out will save you from yourself.
     
    #127     Oct 15, 2022
    KCalhoun and murray t turtle like this.
  8. %%
    WELL the good thing about your consistent losses\ you also\ are proving the market is not \ no way random. Believe it or not i did that some what first 52 weeks =amazing\LOL:D:D
    [200# ]OCT may not be the best time to mention it; did you ever notice a downtrending 200 day moving average like SPY benchmark\ makes new bottoms all the time??
    And a related pattern, no psycho- babbel in it, follows.
    FOR a moving target victory, common sense people + pros use like #9 shot, in a 12 gauge; average pellet count 585 pellets for 1 oz lead. NO one uses a single shot rifle or any rifle for migratory birds\ moving birds.
    Sounds like you need to study a bear market\ most make money with SH stuff, /inverse SPY.
    [DIA does ok with 30 single stocks; DOG profits in a bear trend] Not a stock tip or psycho-babbel.
     
    #128     Oct 17, 2022
  9. Sprout

    Sprout

    With it's faults, many discount it's simplistic accuracy.
     
    #129     Oct 17, 2022
  10. Wide Tailz

    Wide Tailz

    I'm no Guru but don't we seem due for a messy "fake" recovery period after the first leg down? I've seen this on a lot of old charts of busted parabolas, bear markets and penny stocks when they run out of fuel:
     
    #130     Oct 17, 2022
    murray t turtle likes this.