Market Wizard Lance Breitstein says experienced traders often know when they’re making a mistake.
They still struggle to close the trade.
“When you're making a mistake, you know it deep down in your subconscious.”
You had a thesis. Then the chart moved against it. Now you’re waiting for silver to crack, or for a stock to pull back, because that’s what you believed should happen.
The position stays open for mainly three reasons:
1. Closing it makes the loss real.
2. You still think the reversal could come.
3. Missing that reversal feels unbearable.
Lance describes the trap: “The pain of your loss... is still less than the pain of FOMO.”
His way to break it is to remove the position from the equation.
“Let me just get flat and reassess. I can always put this trade right back on.”
Once he’s out, he says the trance wears off. He can look at the chart again without needing it to prove him right.
The warning sign is the moment you feel you cannot get flat or step away. That’s precisely when Lance says the break matters most.
Have you ever held a trade you knew was wrong because you couldn’t bear watching it reverse without you?
Lance and five other professional traders go deeper on conviction, emotional attachment, and when to abandon a thesis in the Full Episode. 👇