The Costly Mistakes That Nearly Broke Me (PART 2) 💸
(Missed Part 1? Check my previous post for the tactical mistakes)
Last day I covered execution errors. These psychological traps cut even deeper and cost me more than any bad trade:
The Mental Game Killers:
5. Confusing Losses With Failure
When my $BTC short got liquidated at $35K (before it hit $70K), I thought I was a terrible trader. Truth? Even legends have 30-50% win rates. One loss doesn't invalidate your system.
Reality check: Perfect execution can still lose money due to variance. Focus on process, not outcomes.
6. Playing It Too Safe During Hot Streaks
During the AI meta explosion, I was hitting on GOAT and $ACT but kept position sizes tiny out of fear. When everything's working and you have edge, that's when you should press harder.
Missed opportunity: Could have made 6-figures instead of 5-figures because I was scared to scale up during my best period.
7. Comfort in Consensus Kills Edge
When everyone was bullish on $SOL at $200+, I stayed in because it felt "safe" to agree. Got crushed when sentiment shifted. The crowd provides comfort but rarely profits.
Hard truth: If you always agree with majority opinion, you'll never have an informational advantage.
The Pattern I've Learned:
Technical mistakes cost money. Psychological mistakes cost fortunes and confidence.
The traders making generational wealth aren't avoiding all losses - they're managing their psychology around inevitable setbacks while maximizing their advantages during hot streaks.
Which psychological trap has cost you the most?
