Why does a winning trade make the next mistake more likely?
What this is about: Most traders think their edge lives in their entries. A lot of it lives in how they behave after the last result. Nothing here is a live reading. Every figure below is an illustration, not data from the product.
The mechanism: your risk follows your mood, not your plan
• After a win, the account feels like it has cushion, so size creeps up.
• After a loss, the urge to get back to even grows, so size creeps up again, or rules get skipped.
• After a streak of either, the next trade is judged on the streak, not on its own setup.
• Fear after a loss can also do the opposite: the trader exits early and cuts the winners that pay for the losers.
One scenario, end to end: Take a $10,000 account and a plan that risks 1%, or $100, per trade. Over 20 trades, suppose the plan wins 8 and loses 12 at 2:1. That is 8 x 2R = +16R against 12 x -1R = -12R, a net +4R, or +4% of the account, over the period.
The line to keep: A plan that risks 1% per trade is a different plan once the real number becomes 3% after a good week.
Send me a chat with the word CHECK and I will send you the full lesson, free.
Last image: a portfolio on our demo account, sample holdings. Everything you own in one place, in one currency.
How do you read this one? Answer below.
Follow for a note a day on what the numbers actually say.
$BTC
#TradingPsychology #Crypto #CreviaCockpit
What this is about: Most traders think their edge lives in their entries. A lot of it lives in how they behave after the last result. Nothing here is a live reading. Every figure below is an illustration, not data from the product.
The mechanism: your risk follows your mood, not your plan
• After a win, the account feels like it has cushion, so size creeps up.
• After a loss, the urge to get back to even grows, so size creeps up again, or rules get skipped.
• After a streak of either, the next trade is judged on the streak, not on its own setup.
• Fear after a loss can also do the opposite: the trader exits early and cuts the winners that pay for the losers.
One scenario, end to end: Take a $10,000 account and a plan that risks 1%, or $100, per trade. Over 20 trades, suppose the plan wins 8 and loses 12 at 2:1. That is 8 x 2R = +16R against 12 x -1R = -12R, a net +4R, or +4% of the account, over the period.
The line to keep: A plan that risks 1% per trade is a different plan once the real number becomes 3% after a good week.
Send me a chat with the word CHECK and I will send you the full lesson, free.
Last image: a portfolio on our demo account, sample holdings. Everything you own in one place, in one currency.
How do you read this one? Answer below.
Follow for a note a day on what the numbers actually say.
$BTC
#TradingPsychology #Crypto #CreviaCockpit