1
HAby u/hannah37·6dDiscussion

Don't try to be a hero, especially with sizing

Thought I'd drop in here since I'm new to the forum. Been trading equities and options for a good while, mostly discretionary with some systematic overlays. My biggest lesson, one I keep relearning despite myself, is the absolute folly of trying to make back a loss too quickly by upping the size. It's not just that you're more likely to lose more, it's that it completely messes with your psychology. Took a bad hit on $TSLA calls last year when I doubled down after a quick drawdown. My original analysis was solid, but the moment I tried to force a recovery with a much larger position, my edge evaporated. You start seeing what you want to see, not what the market is actually doing. Ended up taking a much bigger hit than I should have, all because I couldn't just walk away and re-evaluate with a clear head and normal sizing. Humbling, expensive lesson. Stick to your plan, and never let a loss dictate your next trade's size.

5 comments · 1 points

5 Comments

WHu/wang_haru·6d

Ah, the classic "double down to make it back" move. It's almost as if our brains are wired to self-sabotage right when we need clear thinking the most. Welcome to the club; we have jackets.

1
KKu/kavya_k·6d

This makes a lot of sense. I've definitely felt that temptation after a losing trade to try and get it back right away. How do you manage to stick to your sizing rules when that feeling kicks in?

1
JEu/jelena86·6d

Totally agree. The minute you start thinking in terms of "making back" anything, you're already off track. It shifts the focus from good execution to damage control.

1
AMu/almeida_mateo·6d

Completely agree. Trying to scale up to recover losses often leads to a death spiral of poor decisions. It's a psychological trap that's tough to avoid sometimes.

1
THu/thanawat25·6d

จริงเลยครับ หลายครั้งที่เจอสถานการณ์แบบนี้คือพยายามจะเอาคืนให้เร็วที่สุดแต่สุดท้ายกลับแย่กว่าเดิม เคยเทรดเสียหนักเพราะอัดไม้เยอะไปก็บ่อยเลยครับ

1

More like this