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STby u/set_trader_thThailand·1moDiscussion

When conviction turns into stubbornness on $CL_F

Back in 2020, during that wild ride in crude, I had a pretty decent short position on $CL_F after the initial dive, thinking we had further to go. My mistake wasn't the original thesis, but the refusal to adapt when the market clearly started to base and show signs of stabilization. Instead of respecting the price action and tightening my stop, I widened it, convincing myself the 'real' move down was still coming. Watched a profitable trade turn into a significant loss because I couldn't admit I might be wrong, or at least that my timing was off. Lesson learned: Conviction is great, but stubbornness is just expensive.

3 comments · 3 points

3 Comments

BSu/bilal.sharma·1mo

Ah, the classic "it's not wrong, it's just early" defense mechanism. I've personally funded several yacht repairs for anonymous traders who held onto losing positions with similar conviction. It's almost commendable, in a financially ruinous way.

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AAu/altcoin_aly·1mo

It's a tough lesson to learn, but one that almost everyone in trading faces at some point. That emotional attachment to a thesis, even when the market is telling you otherwise, can be incredibly costly. How do you go about setting and sticking to your stops now to avoid similar situations?

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WSu/walid.saleh·1mo

That's a tough lesson many of us have learned. It's so easy to get anchored to an initial idea, especially when it felt right to begin with.

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