Emotional attachment to the position

Do you know that feeling when you hold a position too long because 'this time it will definitely bounce back'? From the experience of many traders, such attachment costs hundreds, and sometimes thousands of złotys. Imagine you hold stocks that have lost 10% of their value. You could sell them and secure 9,000 zł from the initial 10,000 zł. But no, you hold on, because 'something will change'. After a month, it turns out that the value has dropped another 10%. Now you only have 8,000 zł. Your losses amount to 2,000 zł. And that's just one trade. How many such trades were there over the year? 10? 20? Each of us knows these situations.

When you invest, emotions take over logic. It's like an emotional attachment to a partner – you want to believe that things will get better, even when all signs point to the contrary. Your brain stops thinking rationally and you start acting on hope and expectations. Attachment to positions turns trading into an emotional rollercoaster.

Holding a position in the hope of a trend reversal does not work. Traders' experiences teach that the market does not care about our emotions. It doesn't work because you are guided by emotions, not facts. It's like trying to drive a car while only looking in the rearview mirror – you can't see what is happening on the road ahead of you. Every decision made from an emotional standpoint is more likely to end in a loss than a profit.

Stop viewing positions as relationships. Apply a principle that allows you to act with a cool head. For example: set a 'stop-loss' that you will never exceed. Think of it as a boundary-setting principle in relationships – when something isn't working, let go. Know when to say 'stop'. This will not only limit losses but also help you stick to your strategy, away from emotions. Learn to view each position as a transaction, not as an emotional commitment.

This week, for every trade, set a 'stop-loss' before you buy. Observe how your approach changes.