Trading Psychology Podcast Ep77 -- Loss Aversion

[@ApriliaRSV4-777]

this is the BEST Trading Psychology Podcast ... thank you guys so much 🙏

[@ReventonFan]

Thank you for taking time for us ❤

[@chrisrazergitonga1869]

You really explained loss aversion in the best terms. The stipulated time matters the most in deciding if it's cheap or expensive at that time.

[@lynbarbosa5474]

Thank you so much on your Trading Psychology series, it helped me a lot on my trading journey. I already have a good algorithm but i really lack the mindset. Its a game changer. God Bless You

[@philnewpower]

Two trading legends in the making, and no one even knows 😂

[@archravenineteenseventeen]

I let the market decide my lose and win. Clinging to it will destroy you in the long run. Being stoic way of trading is the answer i took

[@KyleBaran90]

It's funny that losses hurt you psychologically more than wins help you, because that's what the math suggests too: a 10% loss needs an 11% win to recover it

[@KyleBaran90]

I wonder if it would be worth trying to chart on Tradingview with prices listed as an index or percent rather than a flat dollar price ... it's more agnostic in that sense. I would consider some tradeable assets as cheap or expensive depending on the size of your account. If you're trying to trade say, nickel, the spread is huge and on a small account (under $500), even with 100:1 leverage, you cannot set your position size small enough to get the proper risk profile. I remember a period last year where even a 0.01 volume was giving me like 18% account risk. Although to be fair, it might not be "expensive" because you have no business doing a trade like that in the first place

[@NoNonsenseForex]

And it gets worse the further you go. A 20% loss needs a 25% gain. A 50% loss needs a 100% gain.

[@ikad89]

Hey VP / Rob. Thanks for the video. I have a question, it is not related to this episode, but it might be part of another topic. First, let's say I mastered trading psychology and money management. For example, if I have 10k in a trading account (of course only risking 2%) but I want to invest part of the money there so it's also working and not sitting there just to give me margin for trading. Would it make sense to take off 5k, invest it in something, let's say buy Gold coins, and then trade the other 5k with 4% risk? And then if I am getting close to the 50% drawdown (which would never happen! Otherwise, I have a lot of problems in my trading), sell the Gold coins and put those 5k back into the trading account? I hope I made my point clear, thanks!

[@NoNonsenseForex]

My trading account is independent of all of my other investments and such, so for me I would say no. I'm not deviating from 2%

[@ikad89]

@@NoNonsenseForex oh I see. Ok, thanks for the reply!

[@LSmithAfrica]

Pew Pew Pew

[@borisamado]

Just a thought… in forex, as currencies trade in pairs, cheap/expensive definitions (in line with the key takeaway of today’s podcast), is not really a thing as if one of the pairs is “expensive/cheap” the other side of that pair is the opposite… net zero effect, right? 😉

[@NoNonsenseForex]

Yeah, people took what they heard in stocks and tried to apply it to FX. Lazy and wrong.

[@Armando-bt1wn]

First

[@MikeyDavis]

Statistically cheap.