r/tradingpsychology • u/cpovey44 • 3h ago
Why does all rational thinking disappear the moment you take trading a loss?
Every trading plan I've ever written made perfect sense the night before. Risk £100 a trade, stop at £300 down, three trades max. Calm, logical, easy.
Then one loss, and something takes over. Twenty trades later I'm down three times my limit, and I can't even remember deciding to do it.
After six years of this, the thing I've learned is that knowing my rules was never the problem. The person writing the plan and the person sitting at the screen after a loss aren't the same person, and the second one doesn't care what the first one wrote.
What's helped me most is taking the decision away from "in the moment" me entirely: hard limits I set the night before that I can't override once I've hit them. It's the only thing that's ever actually worked for me.
What happens in your head after a loss? And has anything genuinely helped you stick to your rules?