This short YouTube video clip (by Kardec Trader) warns that a common mistake among new traders is becoming overly focused on imagined future profits before selling. The speaker describes how traders mentally calculate large profits, enter a "fairytale" mindset, and lose focus on actual trading decisions, which undermines performance.
One toxic trade. I see a lot of new traders have they become super greedy in terms of profits. Before they get into a position, they immediately go, well, if this position goes to this price, I'll make $10,000. If it goes to this price, I'll make $5,000. They start imagining these profits that are non, that aren't really real, if that makes sense, because you haven't really made the money until you sell. So they start calculating and that puts them in like this excited and fairytale world, which essentially makes them lose track of trading and they start just looking at the profits.
