Chasing Losses – Why Do It?
Everyone’s done it one time or another, I don’t care who you are. But why?
Chasing losses is a very short-sighted thing to do. In the long run the odds are stacked against you, it’s outright gambling. There can be many reasons someone end’s up in this position, but there’s only really one reason for chasing. Lack of acceptance (of the situation).
If you can’t accept it when you’ve made a mistake you’re pretty much stuffed!
Following my last post about scalping I thought it’d be important to talk about chasing losses. In the earlier stages of learning to trade its more likely it’ll happen. I honestly don’t want that to be you… hopefully the details below will help!
See this popular YouTube clip from earlier in the year…
Re-Programming Yourself…
Breaking the cycle is one thing, but over the longer-term you’ll need to acknowledge what happened and then look at ‘re-programming’ yourself.
Repetition is the best way to re-learn anything. The hard bit is going through the initial stages of keeping disciplined. After a couple of weeks it gets a lot easier…
Understanding the fears that drive emotion when it comes to trading is another good idea. It helps raise awareness and gain self-understanding.
As I’ve said in previous posts. Understanding yourself in the moment really is half the battle, knowing what makes you tick is the best way to avoid making a foolish mistake that even leads you to the position where you consider going on the chase. I believe that; focusing on yourself and your own behaviour is the best place to start. It was a big moment for me, and if I can do it, anyone can!
3 thoughts on “Stomach-Churning Mistake… Chasing Losses [VIDEO POST]”
Big true… this is a game pushed by fear and emotions. Trading helps discover myself and often a trading session is a battle against me.
saluti
Hi Caan,
To borrow a line from a song “I come from a land downunder”. I to am a trader albeit more a position taker.
I trade on Australasian gallop and harness racing. My exchange of choice is a company called Citibet. They are Asian based but offer product from all around the world including the UK. There are a few reasons that i use Citibet as against Betfair, liquidity being one.
I’d love to converse with you as obviously we’re in the same industry and may be able to help each other but as much as that may be the case, i’m always interested in what makes people tick especially in an industry that is in general quite misunderstood.
Take care and keep well. I hope to hear from you.
Hi there: I am looking at opening a citibet account , are you able to assist me on a tutorial on using the exchange for a fee? Many thanks