The term "Correct" exists

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Series: "The Mind of the Market, The Essence of Trading" Part 35

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January 22nd (Monday), Tokyo, a heavy snow warning!

Many people went home early, but the stations were extremely crowded and the timetable was severely disrupted.

However, the railway companies did a wonderful job, transporting a large number of passengers properly despite the snow.

Depending on the line, under certain conditions, it was more comfortable to go home slowly.

But that is merely a result of reasoning... Even if you expected confusion and congestion, you could say with certainty that “setting off on the return journey was the right thing to do.”

Conversely... there are ways of thinking like, “I shouldn’t move hastily, I should be prepared to stay at the company,” or “It’s not a big deal; this is an unusually unexpected situation.” This, too, is valid.

When considering predictions and results in trading, “I bought and it went down… that was a mistake” is the result of acting on emotions.

The correct approach is to fiercely think about “what to do next in the same situation.”

If, in the next time the same conditions occur, you decide to buy again, then buying and taking a loss is the correct move.

If you absolutely hate taking losses, then you have no choice but to quit trading.

No, no, this is a ruthless world.