I have a serious problem: I don't take a loss

BPtrader · Aug 31, 2009

Quote from smilingsynic:

Loss aversion is a common cognitive bias that traders have to work on overcoming.

http://en.wikipedia.org/wiki/Loss_aversion

Loss aversion doesn't explain why a trader lets a loss grow. According to the theory, a trader would cut his loss quickly. But a trader doesn't.

BPtrader · Aug 31, 2009

Quote from FB123:

Redneck,

This was BPTrader's very first post on these forums 9 months ago:

"I plan to start trading after reading a few trading books. But I really need some advice from REAL people.

If you are a SUCCESSFUL/PROFITABLE trader, please throw me some bits of advice, any advice will be appreciated.

I am especially interested the number of years you took to become successful/profitable, because it will give me an idea of how much time I should be prepared to spend.

Thanks!"

http://www.elitetrader.com/vb/showt...126#post2257126

Since then he has been contradicting himself about having years of trading experience, never losing on a trade, etc.

It makes sense to me that his first post on these forums was probably the most honest one, and that all the other contradictions and lies came later.

Are you sure you still want to hear his marvelous thoughts?

Just thought you should know.

Why do you assume that you know me better than myself?

The more you assume, the more stupid you look. Don't you understand?

Are you REALLY a moron?

Redneck · Aug 31, 2009

Quote from FB123:

Redneck,

This was BPTrader's very first post on these forums 9 months ago:

"I plan to start trading after reading a few trading books. But I really need some advice from REAL people.

If you are a SUCCESSFUL/PROFITABLE trader, please throw me some bits of advice, any advice will be appreciated.

I am especially interested the number of years you took to become successful/profitable, because it will give me an idea of how much time I should be prepared to spend.

Thanks!"

http://www.elitetrader.com/vb/showt...126#post2257126

Since then he has been contradicting himself about having years of trading experience, never losing on a trade, etc.

It makes sense to me that his first post on these forums was probably the most honest one, and that all the other contradictions and lies came later.

Are you sure you still want to hear his marvelous thoughts?

Just thought you should know.

Thank You FB123

But as Iâve stated before â I am open and can learn anything from anyone

To stay true to myself â yes I am open and would love to hear it

But also know Iâve already been there done that with not taking losers (I think I was probably the king of not taking losers at one time)

Now I take them without question

But yes - I am not so big on myself to know â everyone has something I could learn Sir... If I only listen..

Take Care

RN

LoveOfProfit · Aug 31, 2009

Quote from BPtrader:

Loss aversion doesn't explain why a trader lets a loss grow. According to the theory, a trader would cut his loss quickly. But a trader doesn't.

Actually you misunderstand loss aversion. While it would be logical to cut your losses if you were consciously loss-averse, loss aversion simply means a dislike for taking losses.

Given a portfolio with two stocks, one that has gained in value and one that has lost value, most people will sell the stock that has gained, and will refuse to sell the stock that has lost value. Losses hurt, and most people can't take it with a cool head and no emotion.

FB123 · Aug 31, 2009

Quote from Redneck trader:

Thank You FB123

But as Iâve stated before â I am open and can learn anything from anyone

To stay true to myself â yes I am open and would love to hear it

But also know Iâve already been there done that with not taking losers (I think I was probably the king of not taking losers at one time)

Now I take them without question

But yes - I am not so big on myself to know â everyone has something I could learn Sir... If I only listen..

Take Care

RN

That's great - I like to learn too, and never discount the source... unless it's some guy who has been consistently lying and contradicting himself on these forums. If he actually had anything intelligent to say he would have said it already... instead he's just playing this "I'm not going to tell you anything" game because he thinks it makes him look smart. Read between the lines... or better yet, read his previous posts.

Redneck · Aug 31, 2009

Quote from LoveOfProfit:

Actually you misunderstand loss aversion. While it would be logical to cut your losses if you were consciously loss-averse, loss aversion simply means a dislike for taking losses.

Given a portfolio with two stocks, one that has gained in value and one that has lost value, most people will sell the stock that has gained, and will refuse to sell the stock that has lost value. Losses hurt, and most people can't take it with a cool head and no emotion.

Funny (meaning quirky)â¦.

When I started out I was the exact opposite â a loss never hurt â no matter how big

They actually made me absolutely calm and relaxed (A hellofa thing to overcome looking back)

But I do get what you are saying Sir

RN

BPtrader · Aug 31, 2009

Quote from FB123:

That's great - I like to learn too, and never discount the source... unless it's some guy who has been consistently lying and contradicting himself on these forums. If he actually had anything intelligent to say he would have said it already... instead he's just playing this "I'm not going to tell you anything" game because he thinks it makes him look smart. Read between the lines... or better yet, read his previous posts.

If you think I will tell you, you are wrong.

I don't have a deficiency in self-respect, and I won't give out something valuable to gain the attention of some anonymous idiots on a public forum.

So far, my conclusion remains the same: You are ALL ignorant of the reasons.

FB123 · Aug 31, 2009

Quote from BPtrader:

Why do you assume that you know me better than myself?

I don't know you better than you know yourself. What I do know is that you're full of shit and that half the stuff you posted isn't true. That's a 100% fact, proven by your contradictory posting history.

The more you assume, the more stupid you look. Don't you understand?

Which of course explains why everyone is arguing with ME on this thread and calling me an idiot... oh wait, nope. It's you.

Are you REALLY a moron?

Kid, this really has been a laugh, but it's time for me to leave you now to play by yourself. Thanks for the cash you'll be contributing to my accounts.

Redneck · Aug 31, 2009

Quote from FB123:

That's great - I like to learn too, and never discount the source... unless it's some guy who has been consistently lying and contradicting himself on these forums. If he actually had anything intelligent to say he would have said it already... instead he's just playing this "I'm not going to tell you anything" game because he thinks it makes him look smart. Read between the lines... or better yet, read his previous posts.

Point taken

Thank You Sir

BPtrader · Aug 31, 2009

Quote from LoveOfProfit:

Actually you misunderstand loss aversion. While it would be logical to cut your losses if you were consciously loss-averse, loss aversion simply means a dislike for taking losses.

Given a portfolio with two stocks, one that has gained in value and one that has lost value, most people will sell the stock that has gained, and will refuse to sell the stock that has lost value. Losses hurt, and most people can't take it with a cool head and no emotion.

I do not misunderstand loss aversion.

You did.