0:35
Traders cluster positions near market levels where they'll get liquidated, creating choppy, painful drawdowns. The psychological trap: holding losing positions and hoping instead of closing them, which only delays the damage to your account.
Traders cluster positions near market levels where they'll get liquidated, creating choppy, painful drawdowns. The psychological trap: holding losing positions and hoping instead of closing them, which only delays the damage to your account.
The problem that they're not understanding is the people that are in these two sides are making bets in here where it's the most choppy. They're taking positions here. Their liquidation levels are on the edges. Right. But what happens is when the market makes just a tiny move against them, they're in drawdown. And everybody in this call should understand that when you're in drawdown, you can't close the position. You're going to stay there. And the more you get in drawdown, the more you don't want to close it, the more you're praying and hoping and staying married to the position. You can close it, but you're going to give the market some money or a lot of money, but you're going to walk away with less money in your account.
