There’s one key differentiator between winners and losers: winners always let winners run, while losers let their losers run. The same applies to trades as well — winners pick winning trades and keep letting them run, while losers sell winning trades early and let the losing trades go on. In this episode, Somesh discusses the psychology of taking profits — when and why you should take profits. 

In this episode, Somesh discusses:

• Psychological factors that impact your trading — deposition effect, overconfidence bias, herding behaviour, loss aversion
• The impact of fear and greed and how that affects the traders
• The  rationalized approach to taking profits
•  95% of traders lose money - how to become one of the 5% who make money

Memorable Quotes:

“Winners will always let your winners run, while losers will let the losers run.”

“The only way to succeed in this game is to double down on your winning trades, not doubling down on your losing trades.”

“95% of traders lose, but only 5% make all the money from those… It’s a zero-sum game. Someone has to lose for the other person to win. If 95% of traders lose money, that means all the money’s going to the 5% that actually makes money.”

Resources:

Somesh S (@kay_capitals) on Instagram

Kay Capitals on YouTube

Somesh (@KayCapitals) on X

Join The Day Trading Lords Discord 

Join The Daily Trading Newsletter 

If you enjoyed this episode of Trading Lords Podcast, then make sure to Rate, Review and Subscribe to our podcast. Your support keeps us going strong!

Hosted on Acast. See acast.com/privacy for more information.