Thesis Drift
Thesis drift occurs when a trader gradually changes the reasoning for holding a position after the original reason for entering has weakened or disappeared.
Why it matters to you
A trader enters because: "Event X is likely to happen this week." Event X doesn't happen. Instead of reassessing, the trader says: "It will probably happen next week." Then: "It doesn't matter because Event Y might happen instead." The trade has changed, but the trader has not admitted it. Writing down the original thesis helps prevent this.
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