One idea that has been very useful in changing my trading habits these past two days is about missing market moves. People always say missing a move feels worse than losing money, but in reality, as long as you don’t place an order, there is no actual loss. Remember, if you don’t place an order, you’re just watching from the sidelines; there is no loss and no cost.
The real cost is never missing out; it is being wrong.
Missing out just means you didn’t make money, while being wrong is what truly loses money. Many people can’t tell the difference between these two things and always feel that failing to catch an opportunity is the same as losing money.
Then, because of regret, they rush to find the next opportunity to "make it back," and as a result they enter the market when their emotions are at their least stable, making it very likely they’ll be wrong. That mistake is when the real losses begin. The principal is gone, and their mindset is broken too—losing on both fronts.
One of the fairest things about the market is this: there is never a shortage of opportunities.
The move you missed this time will be followed by another one later. If you didn’t make it this month, there will be new ones next month. As long as you are still here and your capital is still here, opportunities will always be there.
But if missing out throws off your rhythm and you force yourself to chase or gamble, then you may still be here, but your capital may no longer be.
$USELESS
The real cost is never missing out; it is being wrong.
Missing out just means you didn’t make money, while being wrong is what truly loses money. Many people can’t tell the difference between these two things and always feel that failing to catch an opportunity is the same as losing money.
Then, because of regret, they rush to find the next opportunity to "make it back," and as a result they enter the market when their emotions are at their least stable, making it very likely they’ll be wrong. That mistake is when the real losses begin. The principal is gone, and their mindset is broken too—losing on both fronts.
One of the fairest things about the market is this: there is never a shortage of opportunities.
The move you missed this time will be followed by another one later. If you didn’t make it this month, there will be new ones next month. As long as you are still here and your capital is still here, opportunities will always be there.
But if missing out throws off your rhythm and you force yourself to chase or gamble, then you may still be here, but your capital may no longer be.
$USELESS