Too invested to trade.

One of the worst parts of trading at CME is I got to see many traders on their last day. One of the best parts of trading at the CME is I got to see many traders on their last day.

How they got to that point is all different. One of the three D’s, an out trade, markets changed, etc. The thing they all had in common was they became too invested to trade. They had invested their self worth and net worth. They ignored the warning signs.  They were headed down a path but they were the last to realize it.

Trading requires flexibility and when there is too much at stake we attempt to control it. We try to control what we cannot control. In many other parts of life, control is protection but it does not work that way in trading. For 99% of traders the only “edge” we have is the ability to take what is available. The need for control overwhelms us and we lose that edge.

How to at least slow down being too invested to trade:

  • Take breaks: allow time for perspective.
  • Limit Risk: never risk more than you can afford.
  • Bills kill: never buy anything you can’t pay cash for.
Of all of those whose last days I witnessed, many came back.  Some didn’t make the same mistake.

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