Failure 5. Holding a losing position
The loss caused me severe psychological discomfort and trauma. I was already very negative. I lost my temper with my family, always stayed away from them, and suffered from severe insomnia at night. Sometimes, the stress of losing becomes unbearable and I put more money into my trading account. Not because the original capital has been exhausted, but because it has been reduced to a significant psychological level. When I realized how destructive these actions were, I stopped funding my account.
For 90% of my losing trades, I always tend to wait for the breakeven point to occur, sometimes for days or even weeks. I passed the waiting time by imagining the scenes I was looking forward to. I later learned that this is one of the biggest problems in trading that I have not successfully overcome until now.
My biggest loss was 7500 rubles. I held this position for a week. When a contract changes, it is automatically closed. Why didn't I close my position earlier? This is a form of conscious shock therapy. Maybe I need to take a huge loss to make a change. Maybe the subconscious needs to realize that you should cut your losses quickly and always use a stop loss order. I don't know of any other way to put protective orders on all trades.
How to avoid this failure?
- Consistently use stop losses. It’s not that you have a bottom line in your mind, but that you must set a stop loss. Stop loss is triggered, and your loss is minimal at this time. Stop loss is necessary. Otherwise, you'll end up like me, stuck in a losing position waiting.
5 lessons from failure, keep moving forward!
The loss caused me severe psychological discomfort and trauma. I was already very negative. I lost my temper with my family, always stayed away from them, and suffered from severe insomnia at night. Sometimes, the stress of losing becomes unbearable and I put more money into my trading account. Not because the original capital has been exhausted, but because it has been reduced to a significant psychological level. When I realized how destructive these actions were, I stopped funding my account.
For 90% of my losing trades, I always tend to wait for the breakeven point to occur, sometimes for days or even weeks. I passed the waiting time by imagining the scenes I was looking forward to. I later learned that this is one of the biggest problems in trading that I have not successfully overcome until now.
My biggest loss was 7500 rubles. I held this position for a week. When a contract changes, it is automatically closed. Why didn't I close my position earlier? This is a form of conscious shock therapy. Maybe I need to take a huge loss to make a change. Maybe the subconscious needs to realize that you should cut your losses quickly and always use a stop loss order. I don't know of any other way to put protective orders on all trades.
How to avoid this failure?
- Consistently use stop losses. It’s not that you have a bottom line in your mind, but that you must set a stop loss. Stop loss is triggered, and your loss is minimal at this time. Stop loss is necessary. Otherwise, you'll end up like me, stuck in a losing position waiting.
5 lessons from failure, keep moving forward!