Even your worst trade can help you become a better and savvier trader. When you force yourself at a later time, to recall the emotions you felt when you made a bad deal, you can prevent yourself from repeating the same mistake. Identifying these behaviors can also help keep you from picking up any bad habits, either.
- Over time, we form a routine in the way we process and react to information thrown at us.
- For example, some people lie to their partners on impulse even if they did nothing wrong just to avoid a lengthy conversation.
- Heck, even a kid would fib a little just to avoid a scolding. They aren’t really liars by nature, but they have already conditioned themselves to respond a certain way given a specific situation.
“Your worst trade isn’t necessarily the one where you’ve incurred your largest loss.”