It’s better to stop the desiring trade

There are more of them on the losing side, after all

they already have a basic sense of market conditions, and the issue is losing in the middle of a move

Probably, most traders continue with desire-driven trades

This is especially true for discretionary traders

It might be even more common among discretionary traders who lean toward system trading

When to stop

To stop without looking at the results

That kind of process is extremely important

Because most people end up ignoring them and carrying losses over, resulting in a large negative balance

In trading rankings

The reason why averaging-down trades lose so much is

Not that averaging-down is inherently bad

Rather, averaging-down covers up the human lack of sense

Averaging-down is sometimes likened to a devilish method

But I think it can be angelic, because it covers those weak spots

However, if you think with greed, it becomes a devilish method

The tool used for covering up is perceived simply as a profit-multiplication tool, which can foster a losing habit

What is averaging-down

It is a covering method based on market sense

It is not to double profits

Just like hedging, hedging is not about doubling profits either

It is, at its core, something that covers your trades

Many traders tend to neglect their mental state

In trading, the mind is incredibly closely connected

When trading, at times you must decide with discretion

In such emerging market conditions

Greed becomes a real obstacle

Because of “the previous market was fine,” they hold on to averaging-down and do not cut losses

As a result, losers in rankings who rely on averaging-down stand out

As a cause of losing

Desire-driven trading accounts for quite a large portion

Indeed, what we want to do is

Trade × earn profit

But these are still outcomes of “repeated fluctuations”

Therefore, even though one would expect repeating gains and losses,

desire-driven trading leads to trades that ignore the ups and downs

As a result, they end up in a negative balance

Therefore, greediness depends on the market

If the market signals are not favorable to your trades

You should cut losses and think about it

It’s a balance walk with greed

Trading is a sequence of selections and rejections

To keep your mental state strong, it is better to stop desire-driven trades

The feeling of “I lost today, but that’s okay”

is the correct mindset for traders

If you think, “I must earn no matter what!”

There will be markets where you cannot survive, and you will pile up losses

By repeatedly curbing desire and cycling gains and losses

Your trading results will rise accordingly

If they don’t improve, you should raise your desire a bit

This is a trading concept that involves a tremendous amount of mental engagement, isn’t it?

That’s how closely mental state is linked to a trader

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