Why pessimism pays off in trading

[ituglobal]

The advice I’m about to share may seem counterintuitive.



But being pessimistic really does make you a better trader.



Let me explain…



Think about the time when you took a setup that met all the criteria of your trading plan.



It was such an A+ setup that you were certain it would hit your profit target.



And after calculating the risk-to-reward ratio…



You were just waiting to see that extra 3.5% in your account balance.



But no…



The market ended up reversing on you and started racing towards your stop loss.



All certainty and optimism you felt were replaced with a fear of losing.



And by the time you were stopped out, you likely felt a mix of disappointment and frustration.



Which you ended up carrying with you for the next trade you took…



Sound familiar?



Well, this is the danger of being optimistic about your trades.



You become so tied to the outcome that you experience an emotional rollercoaster when you’re trading.



And that’s why it pays to be pessimistic.



If you visualise your trade consolidating, retracing on you and even stopping you out…



You’ve already accepted the worst-case scenario in your mind.



So you can trade without any stress, anxiety or frustration.



And take your trading to a more professional level.



Of course, this is easier said than done….


Author: Charlie Burton

 

[Chadpowell]

The advice I’m about to share may seem counterintuitive.



But being pessimistic really does make you a better trader.



Let me explain…



Think about the time when you took a setup that met all the criteria of your trading plan.



It was such an A+ setup that you were certain it would hit your profit target.



And after calculating the risk-to-reward ratio…



You were just waiting to see that extra 3.5% in your account balance.



But no…



The market ended up reversing on you and started racing towards your stop loss.



All certainty and optimism you felt were replaced with a fear of losing.



And by the time you were stopped out, you likely felt a mix of disappointment and frustration.



Which you ended up carrying with you for the next trade you took…



Sound familiar?



Well, this is the danger of being optimistic about your trades.



You become so tied to the outcome that you experience an emotional rollercoaster when you’re trading.



And that’s why it pays to be pessimistic.



If you visualise your trade consolidating, retracing on you and even stopping you out…



You’ve already accepted the worst-case scenario in your mind.



So you can trade without any stress, anxiety or frustration.



And take your trading to a more professional level.



Of course, this is easier said than done….


Author: Charlie Burton

This thread had my all along. That actually is a fact and now I remember most of my optimistic friends who are actually very good at learning skills failed in trading.

 

[fargana]

The advice I’m about to share may seem counterintuitive.



But being pessimistic really does make you a better trader.



Let me explain…



Think about the time when you took a setup that met all the criteria of your trading plan.



It was such an A+ setup that you were certain it would hit your profit target.



And after calculating the risk-to-reward ratio…



You were just waiting to see that extra 3.5% in your account balance.



But no…



The market ended up reversing on you and started racing towards your stop loss.



All certainty and optimism you felt were replaced with a fear of losing.



And by the time you were stopped out, you likely felt a mix of disappointment and frustration.



Which you ended up carrying with you for the next trade you took…



Sound familiar?



Well, this is the danger of being optimistic about your trades.



You become so tied to the outcome that you experience an emotional rollercoaster when you’re trading.



And that’s why it pays to be pessimistic.



If you visualise your trade consolidating, retracing on you and even stopping you out…



You’ve already accepted the worst-case scenario in your mind.



So you can trade without any stress, anxiety or frustration.



And take your trading to a more professional level.



Of course, this is easier said than done….


Author: Charlie Burton

Pessimism pays off in trading because it encourages caution and rigorous risk management, helping us avoid overly optimistic and impulsive decisions. By anticipating potential downsides and preparing for worst-case scenarios, we can protect our capital and make more measured, informed decisions. This defensive approach can lead to more consistent and sustainable long-term success.

 

[Amadeus.V]

Quite interesting perspective you have there mate! I can't argue with that.

 

[camillaa]

This thread had my all along. That actually is a fact and now I remember most of my optimistic friends who are actually very good at learning skills failed in trading.

HELLO @Chadpowell
Trading with a pessimistic mindset might seem strange, but it can actually be advantageous. Picture this: you meticulously plan a trade, expecting big profits, only to see the market turn against you, leaving you frustrated and disappointed. By embracing pessimism, you mentally prepare for the worst-case scenario, minimizing emotional ups and downs. Instead of getting swept up in optimism, you approach trades with a level-headed perspective, reducing stress and anxiety. It takes practice, but by balancing optimism with a healthy dose of skepticism, you can trade more calmly and consistently, leading to better outcomes in the long run.

 

[Chadpowell]

HELLO @Chadpowell
Trading with a pessimistic mindset might seem strange, but it can actually be advantageous. Picture this: you meticulously plan a trade, expecting big profits, only to see the market turn against you, leaving you frustrated and disappointed. By embracing pessimism, you mentally prepare for the worst-case scenario, minimizing emotional ups and downs. Instead of getting swept up in optimism, you approach trades with a level-headed perspective, reducing stress and anxiety. It takes practice, but by balancing optimism with a healthy dose of skepticism, you can trade more calmly and consistently, leading to better outcomes in the long run.

It could not be put into words in any ways better than this.

 

[CallahanSinclair]

Always assume the worst, that is the best way to do it.

 

[Zerologic]

I think it's important to be optimistic, but don't be over-optimistic, discipline may be harsh because human nature is greedy, but by saying enough for today, at least we can control greed which is our mortal enemy within ourselves.

 

[Amy4]

The advice I’m about to share may seem counterintuitive.



But being pessimistic really does make you a better trader.



Let me explain…



Think about the time when you took a setup that met all the criteria of your trading plan.



It was such an A+ setup that you were certain it would hit your profit target.



And after calculating the risk-to-reward ratio…



You were just waiting to see that extra 3.5% in your account balance.



But no…



The market ended up reversing on you and started racing towards your stop loss.



All certainty and optimism you felt were replaced with a fear of losing.



And by the time you were stopped out, you likely felt a mix of disappointment and frustration.



Which you ended up carrying with you for the next trade you took…



Sound familiar?



Well, this is the danger of being optimistic about your trades.



You become so tied to the outcome that you experience an emotional rollercoaster when you’re trading.



And that’s why it pays to be pessimistic.



If you visualise your trade consolidating, retracing on you and even stopping you out…



You’ve already accepted the worst-case scenario in your mind.



So you can trade without any stress, anxiety or frustration.



And take your trading to a more professional level.



Of course, this is easier said than done….


Author: Charlie Burton

It is always wise to be ready for the worst-case scenario! Well put 🙂

 

[fargana]

Because in case of losses you won't be disappointed too strong, hence less risk to make mistakes caused by emotions.

 

[Zerologic]

It is always wise to be ready for the worst-case scenario! Well put 🙂

Agree, that the worst risk scenario is when all efforts fail, but in practice, I think it is important to maintain a risk tolerance limit in the trading plan.

 

[fargana]

Hope for the best but prepare for worst, this is very deep saying that describes what you should expect from trading and why we shouldn't underestimate risk

 

[Gito Dinev]

The advice I’m about to share may seem counterintuitive.



But being pessimistic really does make you a better trader.



Let me explain…



Think about the time when you took a setup that met all the criteria of your trading plan.



It was such an A+ setup that you were certain it would hit your profit target.



And after calculating the risk-to-reward ratio…



You were just waiting to see that extra 3.5% in your account balance.



But no…



The market ended up reversing on you and started racing towards your stop loss.



All certainty and optimism you felt were replaced with a fear of losing.



And by the time you were stopped out, you likely felt a mix of disappointment and frustration.



Which you ended up carrying with you for the next trade you took…



Sound familiar?



Well, this is the danger of being optimistic about your trades.



You become so tied to the outcome that you experience an emotional rollercoaster when you’re trading.



And that’s why it pays to be pessimistic.



If you visualise your trade consolidating, retracing on you and even stopping you out…



You’ve already accepted the worst-case scenario in your mind.



So you can trade without any stress, anxiety or frustration.



And take your trading to a more professional level.



Of course, this is easier said than done….


Author: Charlie Burton

I completely agree. Being pessimistic in trading helps manage expectations and keeps emotions in check. By accepting the possibility of loss beforehand, you reduce the impact of setbacks and stay more level-headed. This mindset shifts focus from hoping for a specific outcome to following the process, making it easier to stick to your plan and avoid emotional reactions when things don't go as expected.

 

[CallahanSinclair]

I completely agree. Being pessimistic in trading helps manage expectations and keeps emotions in check. By accepting the possibility of loss beforehand, you reduce the impact of setbacks and stay more level-headed. This mindset shifts focus from hoping for a specific outcome to following the process, making it easier to stick to your plan and avoid emotional reactions when things don't go as expected.

Exactly! Being realistic about potential losses keeps you grounded and focused on the process, not just the outcome. It helps stay disciplined and avoid emotional reactions when things don’t go as planned.