CRMT- The psychology behind the trade

This morning I saw the short on CRMT early. From my perspective, the stock looked extended and the news didn't appear to be a major long-term catalyst. It looked more like Financing and reconstructing News There's something that fundamentally change the company. The setup made sense to me, and that's why I became interested in the short side.

The problem wasn't the set-up was my mindset. I wasn't feeling completely confident today. When the stock started moving against me, I got stubborn and began defending my opinion instead of simply reacting to what the market was telling me. That's one of the biggest mistakes a trader can make. The market doesn't care that I think it's overextended or that I believe the news Isn't that bullish.

I ended up taking a small loss, and honestly, that's a win compared to what can happen when traders let emotions take over. The lesson today wasn't about being right or wrong on CRMT. The lesson was that psychology is everything in trading. Could have a great setup I still make poor decisions if your emotions are a sink. Sometimes the best trade is admitting you're not mentally locked in.? Protecting your capital and coming back tomorrow with a clear mind.

A small loss is just tuition in this business. Letting stubbornness turn a small loss into a big one is where real damage is done.