The Web Site of Victor Niederhoffer & Laurel Kenner
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A Psychological Query
>Losing is bad, not profiting is worse to me.
I copied this from an email sent late yesterday from James Lackey titled mistress is a pain in the neck. I made five (four actually, one trade was made right before the close on Thursday) trades on Friday. One trade is still on the books (Tim Melvin can guess what that is), one trade was a total disaster and the other four were profitable. Did I care about the loss? Absolutely not. What really bothered me was that after I closed four of my positions the stocks kept on going, going, going. At 4pm I was on the verge of a nervous breakdown even though I had a deep green P&L.
Instead of being grateful for the profit I had made, I was furious that I hadn't waited longer to exit and even though the losing trade seriously dented the green I was more upset about the lost profit than I was about the actual loss.
My question is this. Why are lost profits harder to deal with than actually losing money? When I lose money I chalk it up to, "That's Life," but when I give up profits I want to jump off the nearest bridge for being the idiots idiot...Clive