One of the emotions that can be very damaging to your trading account is when you trade with hope. What that means is you’re hoping the stock will go a certain direction, which usually will never manifest itself because the market loves to go against us.
When you’re trading on hope you’re totally not trading to your trading plan, and hoping that things will work out will always be failing strategy in the long run.
Here are some of the few ways that I’ve traded with hope so that you don’t make the same mistakes and blow your account out at times.
Hoping the market will go up before you even put on a trade so that you can double your profits. Trading way too large of a size here already, being greedy and not thinking about risk management.
Once you’re in the market starts to tank, and you’re praying and hoping the market will do a V-bounce reversal, which is rare by the way so that you can recover your huge losses. Because you started with a huge position size, you’re very deep in the red, and you’re starting to stress, panic or even think the world is about to end, well that’s what was running through my head anyway. You lose all self-confidence and if you don’t blow out your account it’ll take a long time before you can recover the losses and your mental stability too.
Understand that trading is a numbers game. It’s all about probabilities and position sizing to take advantage of the market. Trading like everything else in life, takes time, it’s a long process and journey. Learn to trade to your plan, adhere to your stop-losses and trade with proper position sizing. Trading is a mental game, and when you can handle your emotions both under pressure and also when you’re deep in profits, can all be the determining factor how long you can stay in the game and win.