Loss aversion trading

Turveyd said:
Fear of taking losses is real, ie after a string of losers I'm more likely to take a tiny profit rather than risk another loser, obviously it becomes a lose 100 gain 10 and doomed game.

You may be naturally better trade without emotions, fear, greed but I for 1 have spent years trying to over come such issues.

Saying just don't do it, as I'd apply for everything else in my life sadly doesn't work.
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If you truly understood the math you wouldn't do it and there would be no emotion. No amount of time on the couch will explain why it's a bad idea. Once you are convinced it is a bad idea you won't do it anymore. If it falls in the discretionary area it is still math, but the math goes something like, "I sure have been taking a lot of small profits lately, better let this one ride so I don't get a bad reputation." See? It's still all based on math. How many times do you cheat compared to how many times you do it right. Then compute your cheat:honesty ratio and after a few honest trades you will have some free cheating trades to bring your ratio within the guidelines you have set for yourself. What? Me worry? Worry about what? Oh, you mean losing it all? Oh yeah, that sucks.
 
java said:
If you truly understood the math you wouldn't do it and there would be no emotion. No amount of time on the couch will explain why it's a bad idea. Once you are convinced it is a bad idea you won't do it anymore. If it falls in the discretionary area it is still math, but the math goes something like, "I sure have been taking a lot of small profits lately, better let this one ride so I don't get a bad reputation." See? It's still all based on math. How many times do you cheat compared to how many times you do it right. Then compute your cheat:honesty ratio and after a few honest trades you will have some free cheating trades to bring your ratio within the guidelines you have set for yourself. What? Me worry? Worry about what? Oh, you mean losing it all? Oh yeah, that sucks.
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Pretty Sure I TRUELY 100% understand the math's, obviously I'm doing it wayyyy less than I used to, but it's a real issue.

While Day Trading / Scalping, when the market goes against you a bit, then goes your way soooooo many times it just gets to BE / Tiny profit before turning again and crushing you. ( Obviously my method was poor and has been resolved since LOL )
 
Turveyd said:
Pretty Sure I TRUELY 100% understand the math's, obviously I'm doing it wayyyy less than I used to, but it's a real issue.

While Day Trading / Scalping, when the market goes against you a bit, then goes your way soooooo many times it just gets to BE / Tiny profit before turning again and crushing you. ( Obviously my method was poor and has been resolved since LOL )
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yeah, in poker they call it being on the Schneid. It's always comforting to break the spell and win that first pot no matter how small, get off the Schneid and back to your game. The problem for me is my trades take a long time to develop and if I keep taking quick short profits the only trades I end up with are the ones that started out bad and never gave me a chance for a quick profit.
 
java said:
yeah, in poker they call it being on the Schneid. It's always comforting to break the spell and win that first pot no matter how small, get off the Schneid and back to your game. The problem for me is my trades take a long time to develop and if I keep taking quick short profits the only trades I end up with are the ones that started out bad and never gave me a chance for a quick profit.
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So you've solves 1 problem, but created another nice :)

Of you trade counter trend then it's take the fluke 2pts or take a big loss, I've trained out counter trend finally, although tend changes while holding still have me holding, working on this next...
 
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