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u/LukeArdenCo
9 hours ago
Giving Advice
The excuse that felt true even though I knew it wasn't
Following up on the last two posts, going one step further back. Before sunk cost, before the catastrophic blowup, there's this thing that happens first, and it's sneaky because it doesn't feel like a mistake, it feels like you're being reasonable.
Basically it's what happens when reality and your self-image don't match up, and your brain would rather bend reality than let go of the self-image. You think of yourself as a good trader. Then you have a rough stretch that says otherwise. Instead of sitting with that, your brain starts building little stories to make the two things fit together again.
1. It shows up as excuses that sound smart. "Market's just choppy right now." "This is a normal drawdown, nothing's wrong." Sometimes those things are even true. The problem is you're reaching for them to avoid a harder question, not because you actually checked.
2. The losing money part isn't even the worst part. It's what the losses seem to say about you. Am I actually not as good as I thought? That question is uncomfortable enough that your brain will do almost anything to dodge it, including making up reasons that have nothing to do with what's real.
3. Listen for yourself saying things like "that's just not who I am as a trader" or "I'm naturally an aggressive trader, that's my style." That's not analysis. That's you protecting your ego and calling it strategy.
4. It makes you slow to change, even when you can see the writing on the wall. I actually tracked this for myself once. On average I was adapting to real shifts in the market about 47 days after I should have. Not because I couldn't see it, but because some part of me didn't want to admit I needed to change.
5. Just naming it out loud helps more than you'd think. Literally saying to yourself "okay, I'm just making excuses right now" breaks the spell. It's a lot harder to keep lying to yourself once you've caught yourself doing it.
6. Try to care more about whether you followed a good process than whether you were right. If your ego is tied to being right, every loss feels like an attack and you'll defend it. If it's tied to trading well, a loss is just information, and you can actually look at it clearly.
This one's easy to miss because it doesn't look reckless like revenge trading or obvious like overtrading. It looks like confidence. That's exactly the problem.