What is the psychology of "selling at the bottom" for a loss

[tomkat22]

Put me in the camp that believes stop hunting is real. It's not that big a deal to me and I dont stress about it but I do believe its real.

 

[Overnight]

Put me in the camp that believes stop hunting is real...

That's just because you thought the boogie-man was real at camp Redwood.

 

[SoyUnGanador]

The psychology is the market cratered, you hold on throughout the whole cratering, but then, at the very, very bottom, you get a margin call and have to sell most of your shit. Immediately thereafter the market turns around and goes insanely higher. So you lost almost everything in the market down movement and completely missed the market up movement.

That is the psychology LOL.

 

[tomkat22]

That's just because you thought the boogie-man was real at camp Redwood.

Couldn't have been worse than the camp where Jason was doing his evil deeds(Crystal Lake?)

 

[Overnight]

Couldn't have been worse than the camp where Jason was doing his evil deeds(Crystal Lake?)

Camp Redwood was way creepier than Crystal Lake. You should check out that series, it's gnarly, hehe.

 

[schizo]

Im trying to understand the mechanics or psychology or motivation behind this giving up and selling right before trend reversal.
I see it described in books and i am guilty of that myself.
And always seem to "give up" hours sometimes even minutes before a reversal and an uptrend

For example today avct
I made a stupid mistake of riding it through RS
And for absolutely no logical reason held it through the slow downtrend after RS
And after watching it slowly go down more every day i said thats enough for me its not moving up or down so im out and literally minutes after i sold it it spiked

This happened to men many times and i still cant figure out how i managed to sell right at the fn bottom before trend reversed

I mean i never see it when im not holding a losing position and if i decide to hold it just keeps going more down
I need help to figure this out

Obviously the right move was to "put the stahp loss bro" so i dont need a repeat of literally every youtube guru "the stahp lass bro"

Just need to figure out why and how i manage to consistently find the bottom of the trend but its never in my favor

Why do trader/investors bail out at the worst places? Because we are all emotional creatures. We let fear and greed get the best of us.

But before asking such a question, I would suggest you ask instead "why did I let it run all the way to the bottom"? Was it out of hope that it might reverse? Did you even have a rule like stop loss in place, just in case? Did you also have important areas on the chart like support and resistance marked before the market plunged?

In order for this to never happen again, friend, YOU NEED RULES.

 

[GotherL]

I mean i already know that "coulda shoulda woulda" exited earlier.
What im asking is how me and bunch of other noobs manage to exit precisely before reversal

The market loves playing off the emotions of noob retail investors for the highest profit potential. Don't think yourself selling at exact bottoms or buying at tops is a mere coincident.

 

[maxinger]

That is to gain maximum pleasure in pain.

 

[Overnight]

Put me in the camp that believes stop hunting is real. It's not that big a deal to me and I dont stress about it but I do believe its real.

Here's a perfect example for you, man. Here's a trade I put on tonight on MNQ. See the entry and exits with the text?

Looks like stop hunting, doesn't it? Guess what...That is a sim trade. The market did not see that trade. That is just how it worked out. See where my stop was? It was right at the bottom.

And that is how it is in live trading. It is all about judgement, indicators, time. Blah blah blah.

 

[mute9003]

Here's a perfect example for you, man. Here's a trade I put on tonight on MNQ. See the entry and exits with the text?


View attachment 297426

Looks like stop hunting, doesn't it? Guess what...That is a sim trade. The market did not see that trade. That is just how it worked out. See where my stop was? It was right at the bottom.

And that is how it is in live trading. It is all about judgement, indicators, time. Blah blah blah.

Why would you assume that you re the only one in the market?
Stop loss hunts are for most common prices that are set in the trend by average traders
Not you specifically