TRADING MINDSET - PUKING THE LOWS 🤮📉
GOOD EVENING STEEMIT,
Have you ever wondered why sooooo often, it seems like when you think all hope is lost and it's time to pull the trigger on your contingency plan, that the market prints a bottom and turns around from there?
After selling my SBD for STEEM last Thursday, I wanted to discuss the psychological phenomenon that is otherwise known as puking the lows.
What is Puking the Lows?
Ask yourself this question:
Have you ever been caught buying the highs or selling the lows?
Puking your position simply means getting out of a position when you feel that you just can't hold it anymore. Whether it's the right or wrong thing to do, you don't care... and just like your kebab after a night on the beers, you're out.
Human beings are strange, but predicatable creatures. Now as markets are just a visual representation of human psychology, markets are also highly predictable too. This is really highlighted by the way markets turn from the bottom at the time of peak fear, and turn from the top at the time of peak euphoria.
Unfortunately, as you can see from the latest STEEM pump it happens to the best of us from time to time...
SBD/USD Daily
Why Traders Feel They HAVE to Puke the Lows
As a trader, you never have to do anything. But being a human being means that your mind plays tricks on you and makes you think that you do.
Once again, ask yourself a couple more questions:
Is this trade still within your risk parametres?
If it isn't at your pre-planned stop, then emotions shouldn't be affecting whether you get out of the trade or not, and if you're still in it past your stop, then you know you're a moron anyway!
Are things that bad?
Or have you just read someone elses opinion or sensationalised reporting from known garbage sources? When you take a minute and a step back, you know exactly the types of reporting that I'm talking about.
And most importantly:
Has anything actually changed since yesterday?
Whether fundamentally, technically or most importantly in the reason why you got into the trade in the first place. If nothing has changed and your original plan doesn't tell you to reconsider the trade, then don't touch it!
Is Puking the Lows Always Bad?
You might be surprised to read that the answer to this question is actually no. Sometimes puking the lows is actually the right thing to do.
No matter how good of a trader you are, nobody can tell the future. I know that some of the social media trading celebrities and their band of loyal followers might dispute this claim, but it's the truth.
The trait that makes truly great traders great, is their ability to manage risk. So if your pre-determined risk management strategy tells you to puke what turns out to be the lows, then you've done the right thing!
What is bad, is letting price move through your stop loss level and puking, or even worse, having no plan whatsoever and puking on pure emotion.
Peace ✌🏻.
Instagram: @forexbrokr
Website: www.forexbrokr.com
It's never a bad time to sell SBD for STEEM. I have been regularly dumping SBD regardless of the price. Even at the lows. It all averages out in the long run.
Sort of how I see it too.
Been using SBD as an income.
Wow 😁
Sure...
I've been trying to split my SBD into some STEEM and a little SBD, but somehow just keep buying more STEEM. Maybe it will pay off in the long run, and I won't jave to worry about all th big swings of SBD.
I've had to cash some in the dip to pay some bills last week, knowing I shouldn't...was gutted, but that's just life.
I don’t think you should worry if you’re converting your SBD to STEEM. You can’t go wrong holding STEEM.
Cashing out some of your holdings isn’t puking the low, it’s just (as you say) life. We all have to do it from time to time.
wow this is very helpfull post ....and also knowlageble .....i am your new follower ......but i am allreday see your all post .....your every post quality amazing ....i love to read your post ...that's way i am followed you..... thanks for shereing this amazing type post ...wish you best of luck ....keep it up bro....
What part helped you?
Never heard the phrase "puking the lows" before but thumbs up for a well written article on the topic.🙌🏼
Especially liked the introspective questions to ask when it doubt, usually allows you to take distance to your emotional self and look more rationally at the decision at hand.
I'm a sucker for everything related to cognitive biases and psychology applied to markets so will stay tuned if you do more of these posts, haven't stumbled across your page before :)
Otherwise, if you're into travelling, vlogs, fitness, self-development etc feel free to check out my channel, in any case keep up the good work and I'll see you around! :)
Hey William, cheers for checking out my blog. As a trader, I love the markets specific blogs that I do, but I do plan to include a lot more mindset stuff.
Your self development stuff all ties in with trading mindset, and it's always interesting to read, so I've given you a follow. See you around mate.
I think I might have to puke the low as my goal is to make enough for a flight to New York . Having a timed deadline can help you make your decision . I will sell some of my coins at a loss but thats better than charging the flight to my credit card .
That's not really puking the lows though. You're not bailing on your position because you can't take the pain anymore, you just need cash for real life.
Enjoy the trip to NY man. I'm actually kind of jealous...
i really like your post and i enjoy it very with all post 👍
Please do not spam everyone’s blog with the same generic comments.
https://steemit.com/@cryptobear.btc
Spammmmmmmmm. Flagged properly next time.
it's called advertising,if i wanted to spam you i would use my multiple accounts and s**t all over the place. so turn off your god mode. all i'm doing is checking my options. you did this a month ago with a user named:"sjennon" she posted her list of people she follows and you just went there and left a comment saying:" You forgot @forexbrokr!
;)" either we both spammers or non of us are.
you think she should flag you mate? yeh I didn't think so..
Don’t advertise in my comments. Contribute to the conversation and at least pretend you’ve read the content.
What you’re doing, by posting a single link to your unrelated blog, is spamming. Try contributing to the conversation and adding value to the community.
you just basically said that you spammed that girl. and I won't "pretend" anything. i'm straight as it can get...I mean what's the difference between what both of us did? that you pretended to care?...that a little naughty don't you think?
No it’s not. I read the content and commented something relevant in reply. You pasted the same link to me, just like you do to everyone.
Put the same amount of effort that you’re putting into arguing, into giving relevant, quality comments and you won’t get flagged as a spammer.
yehh I've seen your "effort" in that comment. so relevant. right on time. great self promotional comment. keep it up. just don't forget to flag anyone else that doing the same. and of course deny.....mostly deny....good day sir
Thanks, good day.
Ok, so you want to play the flag game... Let me explain to you why I have upped it to a full flag.
You do not read posts and comment the same link to your blog on everyone’s post. You are spamming the network and devaluing STEEM as a result.
Change your ways to actually contribute to the community or you will continue to be flagged as a spammer.