⚠️ Trading After a Loss? Pause First.

After a loss, your judgment is clouded by emotions like fear and regret. This can lead to impulsive decisions, such as chasing quick recoveries or doubling down on losing positions. Such reactions often result in deeper losses.

🧠 Why It Happens:

Loss Aversion: The pain of a loss is psychologically more intense than the pleasure of a gain.

Regret: Anticipating future regret can cause hasty decisions to avoid feeling worse.

Escalation of Commitment: The tendency to continue investing in a losing proposition to justify previous investments.

✅ What to Do Instead:

Step Back: Take a break to clear your mind.

Review: Analyze what went wrong without emotional bias.

Plan: Stick to your trading strategy; don't let emotions dictate your moves.

Remember, the best traders are disciplined and patient. Avoid making decisions in the heat of the moment. Your future self will thank you.

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