Why Do I Blow Up My Trading?
The recent blog post presented ways in which we can listen to our intuitive inner voice as traders. Sometimes, we not only fail to listen to our inner voice, but actively do what we know to be harmful to our trading and our success. We trade well week after week and suddenly oversize a position, refuse to act on a stop, add to the losing position, and then blow up. Or, on the other hand, we become so concerned about losses that we quickly exit winning positions before they reach their targets, leaving significant money on the table and blowing up our chances for real success. Why does this happen? What can we do to keep ourselves aligned with sound practices and processes? A reader recently reached out, explaining that he once in a while experiences losses that wipe out a large share of his monthly profits. It is frustrating to trade well most of the time, only to lose discipline and seemingly sabotage all we've accomplished. ...