What is someone down 50% looking at? The “all-time high,” thinking, “Once it gets back to my entry price,
I’ll get out.” Remember, there’s nothing but attachment in that thought—no logic. The market doesn’t know your entry price;
it only responds to current supply and demand.
Once you’re stuck holding a position, you’ll automatically seek out good news and tune out bad news. That’s called confirmation bias. You’ll think,
“This time is different.” Those five words have cost more money throughout history than any hacker ever has.
The antidote is simple in theory, but hard to put into practice: before entering a trade, write down “under what circumstances the logic behind this trade
will no longer hold,” then follow through when the time comes, regardless of how you feel. Separate your decision-making from holding the position, and you’ll be able to see clearly.
What is the market saying, not what you want to hear.
What do you think? Share your experience in the comments.