01Definition
Entanglement happens when prior profit, loss, entry price, or missed upside controls the next decision.
02Why it matters
Renaming a failed trade as an investment can hide unchanged risks.
03What to check
- Current evidence versus the original story
- Why the holding period has changed
- Whether the same decision makes sense without trade history
04Healthy / Dangerous
Healthy
Longer exposure has a renewed case and explicit limits.
Dangerous
Avoiding a loss becomes the reason to stay.
05Beginner mistake
Using conviction to describe refusal to reassess.
06Takeaway
An old entry does not decide today's exposure.
See the idea
- 01
A short trade loses its original catalyst.
- 02
The trader relabels it a long investment to avoid reassessing.
- 03
The label changes; the evidence has not improved.
Trace it externally
Compare your current decision with a written thesis and time horizon. Your trade history and emotional reasons need a separate journal.
Go deeper
Selling and immediately rebuying, chasing missed upside, and trying to recover a loss can all reflect attachment. A longer horizon needs an independently supported thesis, liquidity assessment, and exposure plan. A profitable outcome alone does not validate an emotionally driven process.
Need the basics? Revisit 101A →