why do most trader always make same mistake?

[suri112000]

We are conditioned to be right in whatever assignment we do. But trading proves us to be wrong many times. In a quest to be right, we hang on to the loosing trades in the hope of turning it to be right. We hang on to the pain of loss in a trade until it exhausts our ability to withstand a loss. We tend to book profits early. The quest to book profits early springs up from our desire to be right and donot want to be proved wrong. This process is repeated again and again.

This process has something to do with the way how the Monkeys are caught by laying a trap. A nut is placed in a grilled box with a small opening. Monkey can put its hand with opened fingers through the opening and catch hold of the nut. When Monkey puts its hand through opening and catch hold of the nut, Monkey's hand becomes a fist which cannot come out of small opening because fist size is bigger than the opening. Monkey has a choice to make ie 1. whether to forgo the nut and get freed or 2. hang on to the nut and get caught. Guess what? Monkey does always make the bad choice of hanging on the nut and finally get caught as We do in our loosing trades. The catch here is the Monkey in any case cannot have the nut. So, better choice for money is to leave the nut and get itself freed. Similarly, we should let go off our loosing trades early and get ourselves saved. While trading we should always check whether it is a monkey trap.

 

[headstrong007]

because people never change.. old habit never die so easily..

 

[TraderRavi]

why do most trader always make same mistake?

yes why do we make same mistakes,
hanging on to losing trades, hoping to turnaround in favour, and exiting with disgust and lots of swearing when loss becomes unbearable.
and in profitable trades we feel good until it turnsaround and hits SL or we have to scratch it.

 

[howardroark]

I Think ... I feel ... are the biggest enemies of a Trader ...
Once we do risk profiling ... We shud stick to it, no matter what ...
There are .. can wait kinda opportunities ...
There are Grab n Run threats ...
Lotta traders dnt accept we can n we wl hv losing trades ... Thts da ONLY business cost we have .. losing trades ... accept it ... get it over with ...
Trade Journal is the BIGGEST tool fr a pro trader ...

 

[monkeybusiness]

This process has something to do with the way how the Monkeys are caught by laying a trap. A nut is placed in a grilled box with a small opening. Monkey can put its hand with opened fingers through the opening and catch hold of the nut. When Monkey puts its hand through opening and catch hold of the nut, Monkey's hand becomes a fist which cannot come out of small opening because fist size is bigger than the opening. Monkey has a choice to make ie 1. whether to forgo the nut and get freed or 2. hang on to the nut and get caught. Guess what? Monkey does always make the bad choice of hanging on the nut and finally get caught as We do in our loosing trades. The catch here is the Monkey in any case cannot have the nut. So, better choice for money is to leave the nut and get itself freed. Similarly, we should let go off our loosing trades early and get ourselves saved. While trading we should always check whether it is a monkey trap.

I need to memorize this lesson.

 

[travi]

The truth is many times losing trades have reversed, sometimes big profit.
The brain has now hard wired that.

What we have to do is to keep decent(normal to the plan) ISL, never imaginative and never shift ISL.
IF SL is taken out, recalculate your position and factor the reversal and do a quick trade.

 

[Just-Trade]

Hi
here is the answer

he makes same mistake because
1.he is stupid or lazy or
or
started on wrong foot without proper trading education-
started trading without a guide or mentor
or started without knowing ABCD OF money management.


He tried to save money on trading education and training-the saving resulted in 100 times more expenses.
he aims at profit first .
he must aim at loss and controlling it first which he ignores again & again.
===================================================================
Trading done by having a good mentor- knowledge-have good infrastructure-have a set of proper edge tools-have discipline(know what to do by education then do it exactly by having practice and good discipline.
use only tested proven tools.
If anything missed say it .

show me any one who has learnt and earned after so called training classes/coaches. Even the so called mentor doesn't know how to day trade. They earned their livelihood by coaching others!!

Just-Trade

 

[howardroark]

show me any one who has learnt and earned after so called training classes/coaches. Even the so called mentor doesn't know how to day trade. They earned their livelihood by coaching others!!

Just-Trade

I don't know about others ... Neither I want to talk about others ...
I have learnt a lot from my different Mentors and I do keep earning (a lot) because off all the knowledge that my mentors shared with me ...:thumb::thumb::thumb:

 

[NetFreak]

They do that because they hope that the results will be different this time and which makes their next big mistake.

 

[Hulu Girl]

Making mistakes is part of the learning process when it comes to trading or investing. Investors are typically involved in longer-term holdings and will trade in stocks, exchange-traded funds, and other securities. Traders generally buy and sell futures and options, hold those positions for shorter periods, and are involved in a greater number of transactions.