Think about it. Don’t we all remove our hands instantly from a hot surface? I’m sure even Pippo has learned not to put his hand over the fire.
By doing so, you are able to make rational trading decisions, which would hopefully lead to more wins than losses.
منبع: https://www.babypips.com/trading/importance-of-managing-forex-trade-expectations-2024-01-02
Learn to let go of the things you cannot control (the market), and manage those things that you can (your expectations).
There’s nothing wrong with expecting the market to move to a certain level, what is deadly is when you are so stubborn to maintain your view even when price action is telling you otherwise.
Notice carefully my choice of words.
I did not say remove expectations; I specifically said managing expectations. If you remove expectations, you run the risk of not feeling that something is at stake, which could draw your focus away from the trade to other things.
Because these expectations rarely turn into reality, you usually feel disappointed and frustrated when things don’t turn out so well.
On the other hand, if you are able to manage your expectations, you can easily alter your view of the market depending on what price action is telling you.
In trading and probably also in life, managing what we expect is of utmost importance.
Price action might trend in the opposite direction of your position, but you ignore all these obvious signals and focus on insignificant details that still support your idea. The clear pattern is lost on you because you find it too painful to accept.
Pain avoidance in trading is different only in the sense that it deals with emotional pain. To avoid the pain of having wrong expectations, you subconsciously block any information that would invalidate your idea.
There’s nothing wrong with having expectations, but problems could arise when you set unrealistic expectations.
What’s worse is when this situation happens over and over again. Feelings of disappointment and frustration can compound and evolve into anger and resentment towards yourself or even the market. Since you feel discouraged, you might eventually give up and stop trading altogether!
The classic case of having unfulfilled expectations in trading is sticking to a losing trade.
You usually rationalize, make excuses, belittle the significance of conflicting information, and sometimes even straight up lie to yourselves just to feel good.
Our minds are gifted with pain-avoidance mechanisms that help us cope with physical and emotional suffering.
These comprise could-be-profitable yet highly improbable scenarios because you wanna be a billionaire so freakin’ bad.
