A trader explains why most people lose money: they make steady profits on normal-size trades, then over-size out of frustration or overconfidence and blow up. The fix is treating each trade as independent and using a confidence chart to track how your emotions shift between setups.
I take a trade, I make money. I go normal size. Take another trade, make money, normal size. Shit. Why did I go normal size in these trades? I'm such an idiot. You know what? Next trade, I'm gonna go more size. Go in here. My emotions block that. More size, I lose money. Similar pattern. The way you break that pattern up is every trade or every hand is new. Just because you made money in this trade doesn't mean the next setup is good. Just because I had a good setup yesterday does not mean I'm gonna have a good setup tomorrow. It does not make that setup better or worse. That's a new setup, new market, new everything. Let's say this is a confidence chart. And during this trade, it's here. During this trade, it naturally goes here. Yeah. During that trade, it naturally goes here. And when it's here is when you lose money. So knowing that's where, when you're sizing up this emotional meter or emotion meter kind of gets broken.
