Fear of Losses or Fear of Missed Opportunities: A Poll

Fear of Losses or Fear of Missed Opportunities: A Poll

I get a lot of questions about why I entered a certain trade or how I get a certain fill. This is a difficult question to answer. I assure you, though, that it is not impossible to answer it.

Many factors can be attributed to why an entry was made or why an exit was taken. I feel that in order to effectively answer this question, it would be important to understand the mental state of the audience asking. For this reason, I have created this poll and an entire webinar dedicated to this topic.

It is the objective of this entire webinar process to take as many people as possible from where they are now in their quest to achieve consistency and proficiency in trading and to deliver them to their highest potential. I will not be the one setting the limits or the potential for those following me. This is entirely a personal issue and decision (and it is just a decision). Webinar 3 goes a long way toward opening up your mind to a perspective that will greatly help you take the trade when it happens.

Here are the results of the poll that was taken (1,111 participants voted):

  • PopDoc
    Posted at 08:56h, 23 June Reply

    so far, the results are consistent with a survey i conducted 6 months ago where i asked the same question, using different wording.

    actually, i asked it twice using different contexts. context can be important.

    i'm writing a trading psychology book and am including the power of "regret" as an especially strong emotion in trading. in all my years of trading, including my consulting work with very large inst. bank traders, i would hear people talk a lot about fear, and even greed, but regret was often a relatively 'hidden' emotion not as widely talked about, but perhaps more powerful in ways that most don't consciously realize.

    PopDoc Trader
    popdoctrader at gmail.com

  • thelonelytrader
    Posted at 09:19h, 20 July Reply

    Either the first or the second, depending on my reward to risk and my win to loss ratios. If, for example, I'm trading a model that wins 70% of the time, but has a R:R of 0.4 and a high frequency (daytrading or scalping for example), then I'll prefer prefer to miss a trade. If I am trading a model that has a R:R of 1.5 or greater, and a lower frequency, then I'll prefer to take the loss. The correct answer for most would probably be to take the loss, given that most models trade less frequently and aim for ratios of 2:1 or more. Personally, I'm torn between the two, but am inclined to favor the first.

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