Overreaction to a loss
popdoc2013-06-04T11:50:34+00:00I see it all the time - in my work with clients and in my own trading. Issues in trading are often reenactments of old emotional and behavioral patterns from
I see it all the time - in my work with clients and in my own trading. Issues in trading are often reenactments of old emotional and behavioral patterns from
After a big move like yesterday, emotions naturally are stronger. On days like today - the day after, the propensity to trade in response to our P&L is much
Taking a pre-defined loss is part of the business. Exiting a winning trade and watching it continue to work without you is part of the business. Missing an opportunity is
The mind is very powerful. We interpret things based on how comfortable we are, and we decide to take action based on that perceived comfort level. It reminds me of
Many models of cognitive functioning like to use computer analogies. That can be okay, but has limited utility when you're actually trying to change something about yourself. The computer model
Tick-itis is a frustratingly painful dis-ease uniquely associated with short-term trading. And the interesting thing is that it even affects people who think they are immune to such things. Indeed,
I’ve wanted to write something about stress and trading for a while, and there are many directions I could go in. I decided to not go in the direction of