Revenge And Loss by Adrienne Laris Toghraie
Don’t try to get even with the market. Here are some tactics for eliminating vengeful trading impulses from your trading repertoire.
The temptation to get even when we feel that we have been wronged brings out the worst in all of us. Certainly, when a trader feels the pang of loss, a part of him wants to get even with the markets. However, when a person acts out of revenge, the retaliation often results in greater loss. Typically, a trader will take greater risks to overcome those losses, creating a vicious cycle of greater losses and more psychological pain.
FATHER KNOWS BEST
Charlie grew up in a home where his father made all of the final decisions. Even when choices were made that should not have involved his input, such as deciding what food to order at a restaurant, Dad always introduced his unwavering opinion. If Charlie made a choice that his father agreed with, the decision was never acknowledged. If, however, Charlie’s choice did not please his father, he was chastised and punished. As a result of these poor parenting tactics, Charlie built up a great deal of frustration and anger. Charlie dreamed of getting even with his father one day for creating such angry feelings.