{"id":10131,"date":"2022-10-17T07:40:52","date_gmt":"2022-10-17T07:40:52","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=10131"},"modified":"2022-10-17T07:40:52","modified_gmt":"2022-10-17T07:40:52","slug":"why-you-should-manage-your-trading-expectations","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/17\/why-you-should-manage-your-trading-expectations\/","title":{"rendered":"Why You Should Manage Your Trading Expectations"},"content":{"rendered":"\n

Our minds are gifted with pain-avoidance mechanisms that help us cope with physical and emotional suffering.<\/p>\n\n\n\n

Pain-avoidance in trading is different only in the sense that it deals with emotional pain. To avoid the pain of having wrong expectations, you\u00a0subconsciously block any information\u00a0that would invalidate your idea.<\/p>\n\n\n\n

You usually rationalize, make excuses, belittle the significance of conflicting information, and sometimes even straight up lie to yourselves just to feel good.<\/p>\n\n\n\n

Dangers of mismanaged expectations<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

There\u2019s nothing wrong with having expectations, but problems could arise when you set unrealistic expectations<\/strong>.<\/p>\n\n\n\n

These comprise could-be-profitable yet highly improbable scenarios because you wanna be a billionaire so freakin\u2019 bad.<\/p>\n\n\n\n

Because these expectations rarely turn into reality, you usually feel disappointed and frustrated when things don\u2019t turn out so well.<\/p>\n\n\n\n

What\u2019s worse is when this situation happens over and over again. Feelings of\u00a0disappointment and frustration\u00a0can compound and evolve into anger and resentment towards yourself or the even the market. Since you feel discouraged, you might eventually give up and stop trading altogether!<\/p>\n\n\n\n

The classic case of having unfulfilled expectations in trading is sticking to a losing trade.<\/p>\n\n\n\n

Price action might trend in the opposite direction of your position, but you ignore all these obvious signals and focus on insignificant details that are still supporting your idea. The clear pattern is lost on you because you find it too painful to accept.<\/p>\n\n\n\n

Protecting yourself from unrealistic expectations<\/h2>\n\n\n\n

In trading and probably also in life, managing what we expect is of utmost importance.<\/p>\n\n\n\n

Notice carefully my choice of words.<\/p>\n\n\n\n

I did not say remove<\/strong> expectations; I specifically said managing<\/strong> expectations. If you remove expectations, you run the risk of not feeling that something is at stake, which could draw your focus away from the trade to other things.<\/p>\n\n\n\n

On the other hand, if you are able to manage your expectations, you can easily alter your view of the market depending on what price action is telling you.<\/p>\n\n\n\n

There\u2019s nothing wrong with expecting the market to move to a certain level, what is deadly is when you are so stubborn to maintain your view even when price action is telling you otherwise.<\/p>\n\n\n\n

Learn to let go of the things you cannot control (the market), and manage those things that you can (your expectations).<\/p>\n\n\n\n

By doing so, you are able to take\u00a0rational trading decisions, which would hopefully lead to more wins than losses.<\/p>\n","protected":false},"excerpt":{"rendered":"

Our minds are gifted with pain-avoidance mechanisms that help us cope with physical and emotional suffering. Pain-avoidance in trading is different only in the sense that it deals with emotional pain. To avoid the pain of having wrong expectations, you\u00a0subconsciously block any information\u00a0that would invalidate your idea. You usually rationalize, make excuses, belittle the significance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[441],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10131"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=10131"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10131\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=10131"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=10131"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=10131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}