Understanding psychology of revenge trading

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Old Jul 9, 2017, 5:53am   #1
Joined Apr 2017
Understanding psychology of revenge trading

Traders try to preserve or restore their real account balances , after losing money with a string of losses , with larger position sizes .This is how our minds are built and our ancestral brain carries out this process of overexposure , to recover losses.It is also influenced by loss aversion thinking , because nobody likes to lose .

When traders sit in front of screens ,their mindset and emotions are set for wining , traders will try to play the winning game , at any cost because of an emotional hijack.The desire to win drives them to stake higher positions to recover the losses.

This IS NOTHING NEW WITH GAMBLERS , it is in our mindset to win , it happened several thousand years ago in Mahabharata.Here in this scene from the
Mahabharata , the man gambles every asset including his brothers and wife , in a roll of dice because he believes he knows he will win on the next roll of dice .

If you go to play football , you will try to win at any cost , trading is about winning money.

Screen based traders are at risk to revenge trading ,it can be reduced with SET AND FORGET STRATEGIES , that don't require traders to sit in fron of screens.Traders should eventually feel comfortable with their trading strategy because a mismatch with your trading psychology, can motivate revenge trading.Revenge Trading is the leading cause of Trader Failure. Revenge trades are emotional trades that’s done for the wrong reasons. Your emotions have so overcome your normal rational decision making process.



https://en.wikipedia.org/wiki/Mahabharata






http://www.dailymotion.com/video/x2l...-hijack_school
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Old Jul 9, 2017, 9:35am   #2
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foroom lluzers started this thread This is a delusion for traders to have the need for multiple monitors/screens , this is why many traders lose , with multiple screen based multiple losses .This the set up for revenge trades to be triggered.

If two or three trades go into losses , the need to be loss averse increases , hence the trigger for revenge trades to start.

In economics and decision theory, loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains. Some studies have suggested that losses are twice as powerful, psychologically, as gains.
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Old Jul 9, 2017, 8:21pm   #3
 
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Originally Posted by foroom lluzers View Post
This is a delusion for traders to have the need for multiple monitors/screens , this is why many traders lose , with multiple screen based multiple losses .This the set up for revenge trades to be triggered.

If two or three trades go into losses , the need to be loss averse increases , hence the trigger for revenge trades to start.

In economics and decision theory, loss aversion refers to people's tendency to prefer avoiding losses to acquiring equivalent gains. Some studies have suggested that losses are twice as powerful, psychologically, as gains.
this is bs. need screens to see what is happening elsewhere

12 is about right properly configured.
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if you have a little volatility, half an idea where sh^t will turn, and a reasonable stop, I might be able to start making $ off this venture
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Old Jul 9, 2017, 8:54pm   #4
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this is bs. need screens to see what is happening elsewhere

12 is about right properly configured.
Dummy with one brain needs to process 12 trades at same time.HEADING FOR FAILURE
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Old Jul 9, 2017, 9:03pm   #5
 
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Originally Posted by foroom lluzers View Post
Dummy with one brain needs to process 12 trades at same time.HEADING FOR FAILURE
the markets are interconnected dude, you don't know this

there is no trade in one market that doesn't affect another.

a butterfly flapping its wings in China affect the weather in the UK

you need 12 screens or so to see what ELSE is happening
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if you have a little volatility, half an idea where sh^t will turn, and a reasonable stop, I might be able to start making $ off this venture
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Old Jul 9, 2017, 9:28pm   #6
 
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Originally Posted by foroom lluzers View Post
Dummy with one brain needs to process 12 trades at same time.HEADING FOR FAILURE
wow u have alienated your only friend who has been liking your posts
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Old Jul 10, 2017, 1:41am   #7
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foroom lluzers started this thread
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Originally Posted by piphoe View Post
the markets are interconnected dude, you don't know this

there is no trade in one market that doesn't affect another.

a butterfly flapping its wings in China affect the weather in the UK

you need 12 screens or so to see what ELSE is happening
12 amygdala hijacks in one go?
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Old Jul 10, 2017, 1:49am   #8
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wow u have alienated your only friend who has been liking your posts
Click the image to open in full size.
I wanted to help W P BEFORE HE DISSAPEARS WITH REVENGE TRADING.

http://www.trade2win.com/boards/psyc...ml#post1285930
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