Emotions of winning and losing

This is a discussion on Emotions of winning and losing within the Psychology, Risk & Money Management forums, part of the Methods category; Originally Posted by Adamson There is one way to think right about trading. Once you place a trade, stop loss ...

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Old Mar 30, 2011, 11:21am   #49
Joined Jan 2005
Re: Emotions of winning and losing

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Originally Posted by Adamson View Post
There is one way to think right about trading. Once you place a trade, stop loss and Take Profit forget about it. Don't do anything with the trade, chart or currency pair. Go to bed, go for a walk. As soon as trade is close you can analyzing you decision.

Act like you are successful, profitable and wise trader, and sooner or later you will become him.
Not really a valid comment for a level 2 discretionary momentum trader but for a swing trader, maybe it could be useful.
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Old Apr 6, 2011, 2:37pm   #50
 
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Re: Emotions of winning and losing

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Originally Posted by coopster View Post
Not really a valid comment for a level 2 discretionary momentum trader but for a swing trader, maybe it could be useful.
Scalpers can't forget about 20 trades)!

Emotional part is a big part of trading, how do you feel when you lose or gain money is very important. Depends what is money for you. How much money had you parents when you were a kid, what attitude to money you have.
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Old Jun 12, 2017, 7:42pm   #51
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Originally Posted by trendie View Post
Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!
great read
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