Okay, I was watching deal or no deal, (for my sins) and was thinking that it is the "here's what you could have won" type game that often affects people in the trading game as well.
Here is the scenario. You are offered £19k and have 5 boxes left. There is still some big money on the table say £250k, £20k and 3 lows numbers. The odds are against you making more money, yet so many people carry on and lose. In another situation the player deals and then is shown that in fact they could have won a lot more money. There is no way the player could have know what would happen yet still regret their decision.
In trading often a trader will sell, only to see the market carry on further and then regret exiting too early. Next time they hold for longer only to see the market reverse and take away all their profits. This typical syndrome affects many traders and the only treatment is a proper exit strategy defined before you enter the trade.
Can anyone think of any conditions that affect traders in everyday life or any other useful analogies linked with trading follies and failures.
Here is the scenario. You are offered £19k and have 5 boxes left. There is still some big money on the table say £250k, £20k and 3 lows numbers. The odds are against you making more money, yet so many people carry on and lose. In another situation the player deals and then is shown that in fact they could have won a lot more money. There is no way the player could have know what would happen yet still regret their decision.
In trading often a trader will sell, only to see the market carry on further and then regret exiting too early. Next time they hold for longer only to see the market reverse and take away all their profits. This typical syndrome affects many traders and the only treatment is a proper exit strategy defined before you enter the trade.
Can anyone think of any conditions that affect traders in everyday life or any other useful analogies linked with trading follies and failures.