How do you admit you were wrong, in trading and to yourself?

Being wrong is the default state in trading — most trades could fail, most forecasts miss. Yet admitting it remains one of the hardest psychological skills.

How do you admit you were wrong, in trading and to yourself? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your process?

  • how you notice you're defending a losing position
  • what makes the admission easier
  • how being wrong became less painful over time
How do you admit you were wrong, in trading and to yourself? — moving average crossover diagram
A fast moving average crossing a slower one

The expectancy guide makes being wrong statistically normal.

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…