Excellent article . Although Carlson is talking about the reason
investing is hard in a volatile market, his point about losses
applies to trading just as much. In a two-word phrase he captures
one of the big reasons why trading is so difficult: "loss
aversion." In trading, we're always checking on our trades , and
that leads to worry over losses (drawdown), which makes staying in
a good trade setup harder.
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Situational Awareness (Ben Carlson) Excellent article
Posted by frtaylor on 8th of Apr 2018 at 03:45 pm
Situational Awareness (Ben Carlson)
Excellent article . Although Carlson is talking about the reason investing is hard in a volatile market, his point about losses applies to trading just as much. In a two-word phrase he captures one of the big reasons why trading is so difficult: "loss aversion." In trading, we're always checking on our trades , and that leads to worry over losses (drawdown), which makes staying in a good trade setup harder.