Whether it’s deciding when to stay in a trade during a period of uncertainty, knowing when to scale up, or recognizing when to switch trading styles after a losing streak, the pressure to act quickly and the fear of making the wrong choice can be overwhelming.
Reflecting on these tough calls can provide valuable lessons for others in our community.
What’s the most difficult decision you’ve ever had to make in your trading journey?
Hmm. For me, it might be deciding to take a break from trading when it started to affect my mental health. The stress and losses got to me and I had to decide to take a break before I continue to spiral. But I’m glad I did! 'Cause now I’m back and (hopefully) better!
Close down a gigantic loser of a trade. Normally I’d hold and hold, waiting for the market to turn around, but this time I didn’t see that happening any time soon.
Taking the decision to cash out my entire crypto investment in March 2024. I missed this opportunity back in Jan2022. My account was 5% away from the level that I would have cashed out a 4X investment. I held on until it was less than my original investment. So in March this year, I pulled the trigger, according to my plan, that halved my trading account value, but that action turned me from a loss making trader into a profitable trader, and psychologically far more stable than in the past. Though that was only a 110% gain over 4 years, it is far better than most other things I have done in life (apart from the security of consulting for a living).
I’m more of that type of person: You don’t start crying and just give up. You go through with it!
That’s basically the right way to think. But the problem is finding the right moment to realize that you can’t go on like this.
Fortunately, I found it almost in time and stopped my discretionary trading, which was really not very successful. I wanted to stop at first, but then I discovered trading with Expert Advisors and was much more successful!
The decision to stop focusing on P&L and to make trading decisions based on my analysis.
This was put to the test when my analysis told me to buy some extremely undervalued stocks when there was panic selling during the COVID crash.
I can’t describe how scary it was, my analysis told me to keep buying while the P&L was going into full meltdown. So I kept buying.
Finally the market turned 1 week later (but it was an excruciating 1 week wait) and rocketed higher to all time highs in the post-COVID recovery. The account doubled over the next few months. My analysis then told me to get out, while the P&L was saying hang on and ride it for longer. The old me would have stayed in longer, but this new me ignored all of that and trusted the analysis.
This was a paradigm shift as it was the first step in eliminating emotions from the decision making process and gave me the confidence to go full time 1½ years later.