More often than not we want to be right. Many traders want to be right. To be recognized that you are right in trading is a good feeling.
Pero trying to prove you are right mas madalas makasunog ng port. I want to talk about EGO sa trading. Di nyo man pansin but marami na instances na naging biktima ng EGO ang port ninyo. When i say EGO what do i mean?Look at the example chart. This was my trade few days ago.
This is EEI. So EEI went up WITH volume. I think all time high volume niya for few years din kasi nasa 20M ang volume. So meaning ang dami bumili sa eei. A day after bumagsak.It initially had a support level pero nag collapse din so I cut my losses. I was looking at its movement. It went up 20% a day earlier and nasa 5 or 6 percent lang binagsak nya the following day (not whole day kasi mga 10 am ako natingin and it plays somewhere sa 6 or 5 percent down) I was waiting na magkaroon ng base or support para maka entry ulit. At 9.3 nagkaroon nga ng base. It touched 9.3 then di na bumababa. Naulit ilang beses so my thinking was that could be a good base na. So i entered. Pagpasok ko di naubos lahat ng bids ko ngpush na sya pataas. Validated ang analysis ko na good base nga yun. Few moments later bumalik sya sa entry price ko. Moments later nabasag ang 9.3. I cut my losses again. I have this rule sa self ko na twice lang ako pwede magkamali sa isang stock. After the second cut its a validation na im wrong at the market is moving opposite sa direction na gusto ko.
Why I shared this? Ganito yan. When I was just starting sa trading i used to buy then cut pag bumagsak. Kunyare bili sa 1 pesos. Cut sa 0.95. Re entry sa 0.85 ksi bawe na at may tubo pa kapag bumalik sa 1 ( yan ang thinking ko). Bumagsak cut ulit sa 0.8. Bili ulit sa 0.75 kasi bawe na kapag bumalik ito sa 0.95. It goes on and on until huli na ng mahalata na halos 20% na ng pera ang nawala sa kaka buy cut buy cut.
I did not know it at first na EGO yun. I thought malas lang. Later on I knew na it was me trying na manindigan na tama ako..na instead bumagsak eh mgbobounce..which in the end i was so wrong naman pala… So if you find urself in a situation na you think u are right. Na kahit bumabagsak ay nag aaverage down ka kasi you have a feeling na you are right….Go back and read this post….
Ego destroys accounts faster than FOMO at FEAR.
If a person equates being profitable with being right and losing money with being wrong. A loss is a direct attack on the self-image, constructed by the ego. Since the ego wants to be right, and will always protect itself at any cost, we will sacrifice profits; endure excruciating pain for long stretches. The objective is no longer to be profitable, but to validate the ego.
Hope may nakuha kayo learning kahit konti. Thank you.
tinamaan ako 🙁 !! thank you maam sa paggising 🙂
Wow! Galing! Dami ko narealize at natutunan. Thank you po.