Not too long ago, I thought I’d finally figured the market out
An hour later I GAVE BACK ALL THE PROFIT I'D MADE THAT WEEK
Before that, I had 8 winning trades in a row
And honestly, I think that’s exactly why I got wrecked
Here’s what I learned:
Big losses rarely start with mistakes. More often, they start with the feeling that mistakes are no longer possible
Every profitable trade makes you more confident
- Some people start moving their stops
- Some increase their risk
- Some stop using SLs altogether
- Ignore signals that go against their position
- Take trades they wouldn’t have even looked at before
Meanwhile, the market hasn’t become any harder. We’ve just become less careful
Since then, after a winning streak, I reduce my risk instead of increasing it
Or I take more time off and stop staring at charts altogether
Because the most dangerous trade is the one you enter completely convinced that you’re right
You’ve gotta get used to losses too - they’re part of the process, and it’s better to treat them with the same sense of humor as those two guys in the video
That’s the lesson
What about you, when did your biggest loss happen?