How do you explain your losses to yourself?

The story we tell about a loss determines the next trade. "The market manipulated me" leads to revenge; "my stop was too tight for the range" leads to a fix. Same loss, different futures.

How do you explain your losses to yourself? — support and resistance diagram
Price bouncing between support and resistance

What's your honest self-talk after a loss?

  • the explanation you used to reach for
  • the one you use now
  • how you catch yourself telling the comfortable version
How do you explain your losses to yourself? — trend versus range diagram
A trending market compared with a ranging one

The journal guide keeps the explanations honest.

Comments

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

Log in to comment

Loading comments…