Good post by Taiki bro...
A close introspection of thought process during a trade life time (Type 1)
Stage 1 = Trade opportunity is spotted, position is made.
Stage 2 = Price did not move as expected. Threat of a loos is felt.
Stage 3 = (Fear of loosing) Mind asked should I scratch ?
Stage 4 = (Tackling the fear) Mind wanted to be sure so observed price action bar by bar and found out trade premises is still valid and I should stay. That is where acceptance of loss came and mind got relaxed with thought of SL hit.
Stage 5 = Price moved in favor. Rewarding thoughts started coming in to mind.
Stage 6 = Price moved more, Again fear came in the form of not willing to give back what is still unrealized.
Started looking for possible exit target without looking at what candles are doing NOW !!! Exit target is set.
Stage 7 = Price again started moving against and unrealized profit is now decreasing, Pain is more now for mind as it thinks of exiting and grabbing what is left.
Stage 8 = Price moved more against the trade, SL is moved, SL hit, and EXIT happened. Managed to get some profit.
At stage 5 and 6 when mind was busy in patting itself for catching a good setup and thinking where should I possibly exit, it did not realized to manage the trade and what price is doing NOW. It completely missed that the bias has slowly reversed but mind wanted to believe that it will move more in favor. At stage 7, changed bias has already taken its effect and now price reversed. Exit was made at stage 8, not by noticing the changed bias but because unrealized profit has lessened.
Stage 1 and 4 are the only two stages where it did what a trader is supposed to do. Rest all the steps are emotional.
