at times u may be right & still lose (words from masters)

"Perhaps the most insidious instinct for traders

is the brain’s tendency

to equate the quality of a decision

with its outcome.

--

The brain

is NOT designed to process

the type of low-probability outcomes that traders often encounter,

where losing is part of the game.

Therefore, new traders will often make a trade, lose money, and then think to themselves,

“I shouldn’t have made that trade.”

In behavioral finance,

this tendency is known as outcome bias.

--

Master traders know that any particular trade could be a losing trade

and that good trading strategies often bring losing trades.

Therefore, they have learned to undo the effects of this outcome bias

and to focus not on the outcome for a trade,

but instead on

the quality of the decision behind the trade."



- Curtis Faith