A short YouTube clip by Kardec Trader advising traders to actively consider the negatives of a trade to avoid over-optimism and oversized positions. The speaker recommends deliberately flipping the thesis—e.g., if you want to go long, list why it might not go up—to build better mental preparedness and reduce costly mistakes.
Whatever direction you're taking the trade in and you're unable to recognize the cons of the trade or the downside of the trade, it's very easy for you to get super optimistic. It's very easy for you to put on a lot of size and be wrong in the trade and not really be mentally ready for it just because you are overly optimistic and you only look at the good side. If this is happening to you, this is what I would personally do every time you take on a trade. I would start trying to look at the negatives. I would start trying to look at the other side. So if you want to go long and your thesis makes sense of this trade should go long. Start trying to look at the other side of the trade. So hey, I want to go long. Well, why would this not go up? Why would this trade not go in my direction? Start flipping that from a different perspective if this is a problem you're dealing with.
