Trading Losses? AVOID This Trap!

00:00:00,320 --> 00:00:05,200
people are fearful when they are hopeful

00:00:02,639 --> 00:00:08,000
and they are hopeful when they should be

00:00:05,200 --> 00:00:10,080
fearful what do I mean by that imagine

00:00:08,000 --> 00:00:12,960
that you are sat in a position that is

00:00:10,080 --> 00:00:15,280
making you the aforementioned £1,000

00:00:12,960 --> 00:00:17,960
you're no longer hoping that that £1,000

00:00:15,280 --> 00:00:21,520
is going to turn into £2,000 or or

00:00:17,960 --> 00:00:23,439
£3,000 no you're fearful that,000 is

00:00:21,520 --> 00:00:26,240
going to be taken from you and if you

00:00:23,439 --> 00:00:28,640
are losing a,000 pounds you're most

00:00:26,240 --> 00:00:30,240
likely going to sit there and thinking

00:00:28,640 --> 00:00:32,399
"Wouldn't it be great if this position

00:00:30,240 --> 00:00:34,640
turned around?" You're not fearful that

00:00:32,399 --> 00:00:36,800
that position is going to get even worse

00:00:34,640 --> 00:00:38,719
you're hopeful that it's going to turn

00:00:36,800 --> 00:00:41,680
around and if you want to have a

00:00:38,719 --> 00:00:44,000
fighting chance of making the markets

00:00:41,680 --> 00:00:45,920
your ATM machine and this is not a sales

00:00:44,000 --> 00:00:48,160
pitch it's a bit of a cliche i admit

00:00:45,920 --> 00:00:51,120
that but if you want to have a fighting

00:00:48,160 --> 00:00:53,520
chance of making the markets the place

00:00:51,120 --> 00:00:55,680
where you take money out on a fairly

00:00:53,520 --> 00:00:58,320
regular basis you need to turn this

00:00:55,680 --> 00:01:01,120
around so let's take a look at a not so

00:00:58,320 --> 00:01:03,920
normal and people who are what we call

00:01:01,120 --> 00:01:06,479
the 1% rather than talking about me

00:01:03,920 --> 00:01:08,640
which is something I not that good at

00:01:06,479 --> 00:01:12,479
doing I prefer to throw the attention

00:01:08,640 --> 00:01:15,520
some um some some truly great traders

00:01:12,479 --> 00:01:17,119
one in particular is someone who I wish

00:01:15,520 --> 00:01:19,159
I could have met but he's no longer with

00:01:17,119 --> 00:01:22,880
us his name was Charlie

00:01:19,159 --> 00:01:27,040
D here he says the time you know you

00:01:22,880 --> 00:01:29,759
become a good trader is that day you're

00:01:27,040 --> 00:01:33,000
able to win by holding on to a winning

00:01:29,759 --> 00:01:36,360
position and rather than taking half

00:01:33,000 --> 00:01:38,720
profits you're adding to your winning

00:01:36,360 --> 00:01:40,799
position rather than beginning to think

00:01:38,720 --> 00:01:44,320
where should I get out you're beginning

00:01:40,799 --> 00:01:47,920
to think how can I get deeper in how can

00:01:44,320 --> 00:01:50,240
I commit more he says there are many

00:01:47,920 --> 00:01:53,040
people in here in the pit that have

00:01:50,240 --> 00:01:56,320
traded for a long time who have never

00:01:53,040 --> 00:01:58,880
added to a winning position have any of

00:01:56,320 --> 00:02:01,119
you ever added to a losing trade sure we

00:01:58,880 --> 00:02:02,719
have ah of course we've added you know

00:02:01,119 --> 00:02:04,320
you bought at 20 and then it goes down

00:02:02,719 --> 00:02:06,880
to 10 you're thinking it looked good at

00:02:04,320 --> 00:02:09,200
20 it looks even better at 10 but how

00:02:06,880 --> 00:02:12,000
many of us have bought at 20 and then

00:02:09,200 --> 00:02:14,480
bought more at 30 and bought more at 40

00:02:12,000 --> 00:02:16,160
and bought more at 50 sure there will be

00:02:14,480 --> 00:02:19,599
people who have done it and and good on

00:02:16,160 --> 00:02:21,680
you but it's very difficult emotionally

00:02:19,599 --> 00:02:23,520
to add to a winning trade it's a lot

00:02:21,680 --> 00:02:25,120
easier to add to a losing trade because

00:02:23,520 --> 00:02:26,720
hey you feel like you're getting a

00:02:25,120 --> 00:02:30,239
bargain you feel like you're buying

00:02:26,720 --> 00:02:32,879
something which is cheap and hey when we

00:02:30,239 --> 00:02:37,959
started learning about trading what were

00:02:32,879 --> 00:02:41,680
we told we were told "Buy low and sell

00:02:37,959 --> 00:02:45,040
high." Quite possibly the most expensive

00:02:41,680 --> 00:02:48,080
piece of advice ever dished out in the

00:02:45,040 --> 00:02:50,480
history of mankind because every single

00:02:48,080 --> 00:02:52,239
time I bought low it always went lower

00:02:50,480 --> 00:02:54,400
and every single time I tried it to

00:02:52,239 --> 00:02:58,160
short high it always seemed to know that

00:02:54,400 --> 00:02:58,160
I was in and it would go even higher