Thread by @stocktalk_in

🧠 TRADING PSYCHOLOGY:

1️⃣ When your trade goes wrong, you’ll find it extremely difficult to exit the trade and book a loss.

2️⃣ Your mind will trick you into thinking that the trade might work based on some random information.

3️⃣ This “waiting” will work 9/10 times.

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4️⃣ Every time it works, your mind will reward you with a rush of dopamine (feel good sensation).

5️⃣ It will reinforce your thought process of “waiting till it works”.

6️⃣ Finally, the 10th time when it doesn’t work, you end up waiting till the trade blows your account.

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7️⃣ The trick to avoid this cycle is to identify your state of mind.

8️⃣ The moment you identify that you’ve entered the “hope trading” mode, just quickly close the position.

9️⃣ Don’t allow yourself time to think about it. Just click the EXIT button like a machine.

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🔟 The more time you allow yourself to think about it, the harder it will get to close the position.

Practicing this will take time but make it a habit to constantly identify your state of mind when a trade is active and when you’re “in the market”.

THE END.

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