When you think back, can you remember being praised for being wrong? In school did the passing grades go to those that were right or wrong most often? Did raises and promotions go to those who were constantly wrong? In my experience it was almost exactly the opposite. Almost all experiences we encounter in society teach us that being right is good and deserves to be rewarded, being wrong is bad and at best deserves nothing, at worst, punishment.
Now think about how that conditioning may show up in our trading as the Fear of Being Wrong Monkey. Ever been in a trade and found yourself anxious to close it at the first moment you see it go green? Ever held on to a loser far too long or moved your stop farther away to avoid taking the loss? Ever paused to consider what is really going on when you do that?
By taking out profits quickly when a trade goes in our favor, if the Fear of Being Wrong Monkey is provoking us, we may be acting from the perspective of making sure that “we are right” instead of letting the trade play out the way our trade methodology outlines. By staying in a losing trade too long or moving our stop farther away we may be trying “not to be wrong” instead of following our plan. Trying to “be right” or “not be wrong” are behaviours we have been conditioned for throughout our entire lifetime, however they can be extremely detrimental to our trading.
The next time you are in a trade and have the urge to “take your profits quick” or “just hold on because it might turn around if it just has a bit more time or more room”, take a deep breath and check in to see if this is coming from the Fear of Being Wrong Monkey or if it is because it is what is outlined in your trade methodology. Work on understanding and then letting go of the need to be right and focus on following your trade plan that has been developed to give you an edge … your trading will thank you.
Find out why it’s important to me to get to know my monkeys at my post Embrace Your Mental Monkeys.
