In trading, the most expensive mistake is not always the losing trade. Sometimes it is the need to prove that your original idea was right. This episode looks at why ego, loss aversion, regret and revenge trading can cost traders more than the loss itself.

Why being right gets expensive

Every trader wants confidence, but confidence becomes dangerous when it becomes attachment. Once you see a trade as a test of your intelligence, discipline or identity, the loss is no longer just financial. It feels personal.

You move your stop loss because you do not want to admit the trade failed. You hold a loser because closing it would make the loss feel real. You size up because you want the money back quickly. You ignore your own rules because the market has triggered your ego.

The psychology behind losses

This ep ...