Decisive Trading Fallacy:
The addition of extra important to one trade over others following a change of monetary risk; You increase the amount of money you risk per trade and so you place extra importance on that trade.
This is caused by the idea that "this one is important", "This is my make or break trade", "This trade or action will change my life". In a sense it is a form or romanticism (The fact or condition of making something seem more important or significant than it is, in a romanticized or idealized way)
In a sense it is a similar type of psychological behavior (or a lesser form) people do with an individual they really fancy or their first love. Now Im not here to comment on whether or not this behavior is good for people romantically I am here to furnish understanding by providing a comparative example.
If you have ever experience the type of love I am speaking about this example will be clear for you. That love where your constantly checking your phone or constantly want to be around someone and talk to them. That love where if the other person starts to pull away from you it drives you crazy. That love where you lose yourself in someway.
In this scenario you are the emotional effect of the person (As mentioned before, not commenting on whether this is good or bad)
A similar thing can happen in trading. However in trading this behavior is almost always destructive.
The highest form of trading rationale is the ability to separate your ideas about a trade from the trade itself.
if you have the idea that this one trade will change your life, this trade is make or break or anything similar thoroughly attached to the trade then you have departed from the state if being composed closer to a state of non-composure, even if it is a slight amount.
Decisive Trading Fallacy could be said to be too thoroughly associating your survival or future on one trade or action, "If this doesn't work, Its the end of me"
Typically it is done unconsciously and sometimes an individual can't see his own thoughts because his emotions get in the way.
Half of your trading journey is understanding the markets and knowing your strategy, The other half is developing yourself psychologically in order to be emotionally unaffected by the market and its movements. Do those two things well and you'll win.
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