The siren song of 'just one more trade'
My most expensive lesson wasn't about missing a big winner, but chasing tiny ones into oblivion. It was Q4 last year, a generally choppy market, and I'd had a decent week, a couple of small wins, nothing spectacular. Then Friday afternoon rolled around, and instead of just calling it, I started poking at some micro-caps that were bouncing around. 'Just a quick scalp,' I told myself, 'to round out the week nicely.' Ended up taking four successive small losses on absolute junk, each one making me more determined to 'get back' what I'd just lost. The worst part? The total dollar amount wasn't huge, but the time wasted and the mental energy burnt trying to force something that wasn't there was just draining. It reinforced that sometimes the best trade is no trade, especially when you're just looking for an excuse to interact with the market.