
The Feedback Loop of Death 1) Loss (or loss streak) 2) Paralysis, too scared to enter 3) Compensation: TP early to "make back" some PnL 4) Sizing down bc scared to lose 5) Frustration via compensation i.e not "making it back" fast enough 6) Overcorrection into sizing even bigger than normal 7) Bigger Losses (lead to account blow ups)














