Learn How To Fish

VJAY

Well-Known Member
Madans twitter message posted by xray bro

How bias affects our trading-

A typical battle in a budding trader’s mind : Scenario 1 - My last 2 trades whipsawed, I'll not take the 3rd trade now - the mkt is out there to get me (and the 3rd trade will be a huge winner - we end up cursing someone or mkts) (1/7)

Scenario 2 - I dont have a good feeling about this trade- as soon as the trade triggered,mkts have stopped or gone slightly against me. Let me close this trade before it hits SL (and the mkts actually reverses & trade goes in deep profit) - we end up cursing someone or mkts (2/7)

Scenario 3 - Holy moly, my trade is finally in profit but it seems momentum is ending now. Let me book whatever profits is on the table and wait for the next trade (same as 2 above,we end up booking small profit and miss on the BIG trade) - we end up cursing someone or mkts (3/7)

Scenario 4 - Mkts always hit my SL and reverses..so, I will hold the position (remove SL

and exit at breakeven (voila... the mkts keep going against our position and instead of taking small loss, we take a BIG loss) - we end up cursing someone or mkts (4/7)

Scenario 5 - Last 3 trades were winners - easy peasy

Lemme increase my leverage and trade larger qty (crap.. the 4th trade whipsaws. We end up losing more money in this 1 trade than the entire profit made in last 3 trades) - we end up cursing someone or mkts (5/7)

Scenario 6 - I havent been making any money (cos of one or few of the scenarios) whereas some random guy online is making huge money in every trade. Am sure my strategy is not good. So, lemme find some new strategy/new online guru or the best selling trading book in Amazon (6/7)

or new hot system/holy grail and trade my way to financial freedom. Rinse and repeat 1 to 6. This is a vicious cycle and guess what, finally we become the biggest mouthpiece for why trading does not work !!:DD It is a 'revolving door' maze and work on it to get out.

From Madan Kumar Twitter

Sent from my ASUS_X00TD using Tapatalk
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?