loomdart@loomdart
humanity has evolved via an incredible desire to forever push forward. Yet, this brings some downsides for us in modern times.
We hate being wrong. We really really hate it. The sunk cost fallacy is one of the most pertinent staples of our conscience, we are to keep innovating and advancing and never thinking "fuck.. should I be doing this".
this is exactly why most traders blow up
if you want to be a succesful trader you need to rip this shit out of your heart and soul.
I can GUARANTEE you the number one reason most traders blow up is because they REFUSE to close a trade at a LOSS. How could they, a gigagenius who was gifted in school, ever be... wrong? The trade HAS to go green before they close. They cannot admit they were wrong. If they just hold it till it goes green they can close WITHOUT losing any money. Well, NEWSFLASH. You already lost that money. it's GONE. There is no difference between unrealised and realised loss except clicking a button. The mental pull of "not closing for a loss" will put you in a mental spiral so dire you will end up losing far more money than you even initially had in the trade trying to placate your ego.
You're going to make losing trades. Knowing when to cut them is KEY. Losers average Losers. Repeat this in the mirror 50 times a day. Tattoo it on your arm. Have this quote become part of you. Trading isn't about winning, it's about making sure you don't die when you LOSE.
let's take "ATH Portfolio" as another example. people will go insane and become immensely depressed because they constantly think about their portfolio ATH. this is STUPID. Your portfolio ATH truly does not matter. Why should it? It's a random number from a random point in time. Does knowing your portfolio ATH impact any of your current trades? will charts trade differently because of it? No. It's something that only exists in you, a artifact of our genetic programming that is unfortunately the reason for most people to become tilt traders and get liquidated/lose everything.
Erase everything in markets that doesn't matter. All that matters is how much $ you have and how you have positioned that $. Trading is 95% psychology, and the more you can gain control of your own and not let BULLSHIT distract you, the better a trader you will become.