Why 90% of the traders even after winning 90% of the times gives it back to the markets?
Has this ever happened to you, That you are up 10% on the month and you feel crazy, but the next morning you give it all back to the markets?
What Causes You to Give It All Back?
Thread-
1. Euphoria-
It is the state of mind in which we can not perceive risk, In state of euphoria nothing can go wrong.
So when you are in this state of mind, you feel invincible and there is nothing in the world which can stop you from making money.
That’s why when most of the traders after a winning streak put a Huge position and then Boom, all the luck goes for a toss.
Think about it why most of the traders loose big money when the market starts to go in bear mode from bullish mode, because
when the markets are in a bull market, even if you take trades based on your neighbor recommendation most of them will be right
"Felling too good is not good for your trading"
Winning gives you dopamine rush, And when you trading to get right often you are just feeding your ego
The evolved trader recognizes that winning simply means that you landed on the right side of probability. That’s all. There is no reason to get excited.
It’s just probability and you have an edge that gives you an advantage in the randomness of probability.