2021-08-17-psychology-a-1

Remember – much of the trading issues people have – outside technical analysis issues – in terms of mindset can be traced back to a very basic human condition – we all have a tendency to exit our winners too quickly because we have learned in life that the other shoe always drops – so our mindset is to take profits fast, and we equally and ironically have a tendency to believe our losers will “turn around”, because we are inclined to root for the underdog and always think our “luck will change”.  This leads to the illogical stance of having more faith in our losers than we do our winners.  Solving this mindset issue is a HUGE overcome for traders, even experienced ones.