There it is – the market up 200+ points and you didn’t make a dime. Man is that maddening. You knew (at least kind of) that it was coming but you didn’t take a position. You saw a small pullback but hesitated.

Now you are aggravated – mad at yourself and feeling like you missed something. You feel REGRET.

The next natural feeling is “oh I will just make a few points on the reversal”. So you sell. It moves in your direction for a few ticks… and you think… “see, that’s not so bad”. Then you look back at the screen… and you are break-even, down a tick, BE, up a tick…. “okay” you say… “I will get out of this IF ….”

And then the market takes off in the opposite direction. You are now beyond your stop and are losing money. You think – “it can’t keep going”. Maybe you even double-down to ensure you will at least get out at break-even.

…You know what, there are thousands if not hundreds of thousands of traders doing the EXACT same thing. Some just want revenge and many want to prove they are smart.

And you know what that means, lots of people are short in a market going up.