I am once again amused by the unwillingness of overwhelming number of traders to accept the long rally in the market. they are repeatedly taking anti trend positions and being bleeded.
This reminds me of a very interesting psychological phenomenon...
Suppose you are standing in front of an atm machine late evening and swipe card for 1000rs. Now let's consider a scenario that the atm machine goes bad and keeps vending currency note after note after note and doesn't stop. It counts 1000 and throws them out. Then again counts 1000 more and throws out...
What will be your reaction? What will you do?
Chances are you'll soon call someone and point it out to authorities instead of just collecting all and vanishing. Because that's the way you are groomed. Both fear of punishment and moral hand brakes will keep you in check.
Same mindset and habit spills over to trading. When market whipsaws and beats you, you accept it like a victim accepts his torment. But when a trending market gives you profit and keeps giving you profit with insanity of a bad atm machine, you feel guilty in your subconscious and don't believe it. You feel so uncomfortable that in hearts of hearts wish that it ends.
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