Thursday, September 11, 2008

you wish you had never taken the trade..

the more money you make .. the bigger positions/risks you take and once the the trade is on, you start realizing the impact the trade would have on the account and your trading over all... you just want to walk away... you wish you have never taken the trade ... you even stop looking at the account, ... scared... confused.. don't know why you did it?

Don't even want to think what will happen the next morning... the next morning if the position has reversed... well, then you don't go near it... let it go down and down ... giving yourself one excuse after another to avoid looking at your account... consoling yourself... being unable to see all your gains wiped out... or ... it just gets overwhelming...

If the gain is big even in just paper money... you have already made up your mind... you are thinking about what will you do next ... what will be the next move ... your emotions are in sync with that thinking and suddenly ... the next morning you see the position has reversed... the gains you were thinking/dreaming/planning about have disappeared.... the emotion suddenly changes/switches ... you don't like it any more... don't want to look at it... don't want to think about it.... and that is when the losses keeps getting bigger and bigger.... later on when you think what happened it is hard to rationalize what happened ... why didn't you cut the loss ... and let it grow...

the sudden shift in emotions is very uncomfortable to deal with...