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Trading glossary · psychology

hope

Wishing a losing trade will come back instead of following your plan, which can make a small loss much bigger.

The fuller meaning

In trading psychology, holding a loser past the planned stop in the hope it comes back, or adding to it. Hope keeps losers open while fear cuts winners short, feeding the disposition effect; stops and exits written in advance take the decision away from hope.

hope.

Related words

anchoring · boredom trading · chasing · cognitive bias · confirmation bias · consistency · cool-down rule · discipline · disposition effect · emotion