To prioritize making money over being right, you must embrace three uncomfortable truths: 1. Losses Are a Cost of Doing Business
Many traders refuse to take a small loss because it would prove their initial analysis was wrong. They double down, hoping to be proven right. Eventually, a small loss becomes a catastrophic one. Being Right Or Making Money Pdf
Every trader has faced this moment: You buy a stock. It drops 3%. Your stop-loss triggers. But instead of taking the small loss, you cancel the stop. You average down. You rationalize the news. You hold overnight—only to wake up to a 15% gap down. To prioritize making money over being right, you
Human beings are hardwired to seek validation. From childhood, we are rewarded for having the correct answer. In the financial markets, this manifests as a need to "predict" the future. When a trader buys a stock and it goes up, their ego receives a hit of dopamine; they feel like a visionary. Eventually, a small loss becomes a catastrophic one