Trading is like a battle with the market, but this battle does not seem to be very balanced. In almost every case, the market is the winner.

The proof is that the number of traders who are knocked out of this field is really high, the few remaining are the ones who are profitable.

To survive in a job like this requires traders to be competitive, "more than lose" with the market.

So how is this trait good and bad for trading?

Quick decision making and firm stance.

Calculating over losing is very beneficial in some way in trading.

The two big advantages are:
  1. Quick decision making
  2. Resolute, clear with stance
Embarrassment will often turn good ideas into bad ones, while quick, clear, standing positions will give you successful trading decisions.

When an opportunity presents itself, the market won't tell you, "Hey, just sit there and think slowly, I'll sit here and wait."

On the contrary, you must make decisions with clear consistency, you can not hesitate and choose at random. Therefore, the "more than lose" in this aspect is beneficial for the transaction.

Revenge trading

However, more than losing with the market, the benefits are few, but the harms are many.

The first harm is revenge trading. This is the act of you continuing to enter an order trying to prove that the market must move in line with your expectations, regardless of the risks.

This is the easiest type of trading to lose because you can't control the action. The anger from previous losses makes you wish that the market had to stop this, there must be a profitable trade for you.

If you have an over-the-top personality, then in cases like these, it's very easy for you to burn a large amount of money in your account.

More confident than necessary

Another benefit of losing money in trading is confidence, but in fact this is also harmful.

Because personality overtakes the market often takes your confidence too far. One could even call this confidence conceit.

Because the main motive of outperforming the market is wanting to prove yourself right, this leads to misplaced "confident" thinking.

Example: You know that this trade is risky, because it has no confirmation, comes with a time of unpredictable volatility, but just because you are looking to undo a series of previous losses, you "Confidently" accept this order.

In your opinion, will this style of trading bring success in the end?

Difficult to add trading knowledge

To a certain extent, counting against you will make you extremely conservative, thinking that you are knowledgeable enough in this area.

This is really dangerous, it makes you unable to absorb more knowledge because each knowledge can challenge your current views, accepting them means admitting yourself wrong.

Of course, not all knowledge is meant to challenge opinion, but with a winning personality, you can close your mind.

Easy to lose

The ultimate harm of overdoing the market is losing.

A trader who constantly has high-risk trades, lacks the right calculation and analysis, does not manage his personal emotions, certainly cannot succeed in this job.

To avoid falling into the trap called "over lose", you just need to keep your ego from getting out of control, look at the problem beyond the present moment, and calculate the benefits and risks.

Of course, confidence should still be guaranteed because that is the foundation of successful trading.

Moderate confidence is very different from being competitive, highly competitive. It is also the difference between a profitable and a losing trader.