To tell a fib is a nice way of saying that you are not telling the truth. A trader really can't lie to his broker or the market but a trader can lie to himself, which is even worse. Mark Whistler, in his book Trade With Passion and Purpose, lists a few of the many fibs traders tell themselves. See if you recognize any of them:
1. The losing position wasn't my fault, the market moved against me.
2. The trade was right and the market wrong.
3. I just have bad luck.
4. Eventually the stock will go up (or down)...eventually.
5. Bigger size equals bigger profits.
6. No need to close the postion just yet. I can average down.
7. Because I made so much money on the last trade I can take on more risk the next.
8. If the market is going down I can't make any money.
9. I need to trade a larger account in order to be a better trader.
10. I've had many winners in a row, so now I need a big loser.
Any of these resonate with you? I am sure there are others but there is not enough room here to elaborate. Besides, I need to get back in the market. It can't move without me!
See you later...IN THE CROSSHAIRS!
Comments