Myopic Loss Aversion, the More You Look the Worse it Gets 😨

How to avoid being your own worst enemy when investing

Myopic Loss Aversion - the more you look the worse it gets. This is the double whammy; as traders and investors we are constantly looking at our positions particularly if our positions are red. Take charge of the situation; what was your plan initially and take action and responsibility. Don't be irrational.

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[ukspreadbetting]

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[dakaodo]

This is precisely why I currently scalp -- I'm more comfortable with the size of the wins and losses, it provides the constant trickle of dopamine boosts from wins, indulges the impulse to exit quickly. I rationalize it with the idea that many small trades will average out extreme swings in account balance. as well as keeping me out when I'm not watching. This meant I avoided the JPY flash crash earlier this month.

However, on a daily and weekly basis, I also see the longer term net moves that scalping inherently misses out on. I accept for now that my loss aversion outweighs the potential wins. My goal is to train my mental/emotional state towards longer timeframes. Scalping has taught me a lot about trade management though, and I think this will be applicable going forward on HTFs.

[chrisparrot]

Another Amazingly informative video. Thanks again

[Christiaan]

Great video as ever.... but your bullet points needer a bigger font