The Real Reason You Let Losses Run and Cut Profits Short in Trading

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people love to find the low in a bare

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trend people love to find the top in a

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bull trend there were people when I

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walked in here saying "When do you think

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the crash is coming?" What crash i don't

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know if there's a crash coming what

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crystal ball is it that you're looking

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at because I just see a market that

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keeps making all-time highs sure let's

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talk about a crash if the market's in a

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downtrend let's not talk about a crash

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when the market is sitting at its

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all-time high people think every

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reaction in a trend is the beginning of

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a new trend i would be sitting there

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night after night watching the market

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fall or rise and our client sure as hell

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the moment the market just ticked in the

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other direction by a little bit they

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would pile on as if the trend had now

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changed so my argument here is that

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people are generally fearful when

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they're hopeful and they are hopeful

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when they're fearful and I will explain

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that momentarily now what is normal

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behavior i am letting my losses run why

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am I doing that what am I telling myself

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well I'm telling myself that I hope that

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this market is going to turn around but

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the real reason is I would like to avoid

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pain we have a brain which is millions

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of years old and it has one primary

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function and that is to keep you alive

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at all cost and by the way also love to

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make sure that you never experience any

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pain wants to make sure that you

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maintain your ego preservation your

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state of mind where everything is rosy

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and good so you'll do anything to avoid

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pain and it doesn't matter what scenario

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I throw at you i'm letting my loss run

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because the indicase says so or the

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Fibonacci says so but actually you want

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to avoid pain i'm taking my profits

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because hey you can't go broke from

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taking a profit it's still you avoiding

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pain why well because you hate the

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idea that the market is going to take

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back some of your profits i am winning

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so I'm reducing my stake size why would

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you do that well because I want to take

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it easy now nope you want to avoid pain

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you can't bear the fact that you made

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£400 for the day and God forbid that

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those £400 would disappear let me ask

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you a different question imagine that

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you made a,000 pounds on the day versus

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you lost a,000 pounds on the day who is

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most likely to carry on trading the

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person that have made £1,000 or the

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person that have lost £1,000

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the person who has lost £1,000 is far

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more likely to carry on trading because

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God forbid that he carries on that pain

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into the night and he will do anything

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to get rid of that pain but when he's

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made £1,000 he'll do anything to protect

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that because it feels so good to have

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made £1,000 so I don't want to jinx it