How many traders on the market commerce like this;
1) Fund account after defining egy.
2) Make a collection of trades and a small profit (generlly 1-2 transactions per day, your losses will be smaller than your wins and what is good).
3) Have a losing streak and start trading more (working harder).
4) reunite cash lost
5) return to creating a series of transactions and profitable again
6) Have a losing streak and exchange more
7) In trading more, have yet another losing streak including to the losses.
8) Now in a pit where the negative expectancy of your actions make it very tough to get out of.
In other words, you have the balls to Lose (by trading more harshly after taking any reductions ) but not the balls to acquire (maybe you make a small win and call it a day since you don't want to be greedy (but really it's that you fear giving back what you have made).
If you think about it, you're l playing Russian roulette with your account because on your actions you're letting the possibility of this losing streak to happen and then be inserted to. But from the winning series you're cutting it short and restricting your profits.
Another way of looking at this is that you're expanding your attempts whilst you're in bad shape, or the market is not in sync with your egy. And restricting the attempts in your good shape.
Or. . You're letting your bad form cutting and run your great form short.
It is perfectly natural reply, all be it a hazardous one, however as you can finally seeyour actions are creating a negative expectancy and it is only a matter of time before the dreaded equity curve dive.
Anyhow I exchanged this manner for a number of years and have always wanted to make a thread about it. It is really interesting if you think about it.
The CURE? Perhaps if there is any interest, that can be an additional post. But for now just a ramble.
G/L