It’s mind nothing else which is forcing you to go at this juncture.
This is the biggest catalyst of loosing most of our capital in the stock market.
Perhaps this the biggest reason why we are unable to take stop loss (our most important friend in our trading journey)
And are not profitable for years.
Despite of being in profit there is a time when we get trap in “let’s get zero mentality”, and start thinking that how much capital we can loose, interesting fact is this the profit made by us previously is separated by us that we can take risk on us plus at our risk able capital and here come the problem. Our capital as we all capitalized profit get at a random action. Eventually this happens only 4 times in a year to make our capital zero.
This “let’s get zero mentality is so powerful and energized that it forces us to do AVERAGING, OVERNIGHT, OVERTRADE, NOT RESPECTING TREND AND SUPPORT&REISTANT.
When does this “Let’s get zero mentality” comes:
- When position goes against immediately after our entry:
We start to curse our luck and say this happens only to me and say to market that ok lets make this zero. Here market is so kind to make your capital zero.
- When market gets sideways for hours:
We get irritated and get trapped in this time or hope that It will go in our favour.
How to overcome from “let’s get zero mentality”?
First thing first immediately takes stop loss and find the mistake your made so that this cannot happens again.
Don’t try to make market certain when we know damn truth is market is completely uncertain. If market would be certain people having huge money would have invested all their capital to make it double, there is no certainty.
So accept the reality and play on probability, find out your edge in trading and if things does not go right please exit the position preserving your capital.