Rationalizing Mistakes will Cost you
Picture this, sitting there on your trading desk, having all the latest tools at your disposal. One of those pings up and show you the perfect trade set-up, but for a second you hesitate, and the opportunity is gone.
You doubt yourself and say, “Better late than never,” and that kind of thinking, trying to rationalize a mistake made which will cost you a lot. Instead of a properly managed trade in terms of risk and reward, you have a trade that is out of whack.
When you risk is wrong, your whole trade is wrong, and your target might not cover the risk that you are taking. A simple delayed response and a rash decision leads to overcompensating any losses that you might have incurred and that in turns leads to inconsistent profits.
Bottom line you should always “plan your trade and trade you plan,” otherwise you might as well try your luck at the roulette table.
You doubt yourself and say, “Better late than never,” and that kind of thinking, trying to rationalize a mistake made which will cost you a lot. Instead of a properly managed trade in terms of risk and reward, you have a trade that is out of whack.
When you risk is wrong, your whole trade is wrong, and your target might not cover the risk that you are taking. A simple delayed response and a rash decision leads to overcompensating any losses that you might have incurred and that in turns leads to inconsistent profits.
Bottom line you should always “plan your trade and trade you plan,” otherwise you might as well try your luck at the roulette table.
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