Why is it not ok to be wrong?

Discussion in 'Psychology' started by maxxy, Jun 24, 2009.

  1. maxxy


    In reading this board, it appears that everyone hates to be wrong. However, is not the purpose of well placed stops to take you out of a trade should your system fail?

    In my simple mechanical system based upon a 20 day uptrending equity, I am wrong about 80% of the time. However, the stops are very tight to take myself out of the trade resulting in minimal loss. As price goes in my direction, the stops are continuously updated.

    When I am right, I ride the equity constantly updating stops. The other 20% of the time is where I make my money riding the breakout until I cant.

    I have found that newer traders can't stand to be wrong and the idea of a drawdown is nightmarish.
  2. I cant stand drawdowns either. Congrats on your system.
  3. Nexen


    Plenty will deny this but the very best traders are used to low accuracy.
  4. that means money loss. no one wants to lose money. people come to the market is to make money, not lose money. that is why not ok.
  5. Nexen


    Expectancy is what matters, not if the current or last trade was a loss.
  6. Redneck


    FWIW and IMHO

    In life I can afford to deal in rights and wrongs….

    In business my position(s) are either making money or losing it – my personal take on it does not matter one iota

    Just a dumbass redneck's opinion