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It may sound odd, but sometimes your biggest trading mistakes happen when you’re actually making money…
I learned this lesson the hard way on a trade with SanDisk (SNDK) that should’ve been my best win of the year — but instead became a masterclass in how checking your positions constantly is the fastest way to sabotage yourself.
Let me walk you through what happened and how it completely changed my approach to position management.
The Setup: When Fear Creates Opportunity
When I was in this position, the markets pulled back and the Fear & Greed Index hit extreme fear levels. SNDK got beaten up pretty badly during the drop, even though it was one of the top stocks in the S&P 500 for two years straight.
I knew this was the kind of setup where systematic analysis beats emotional reactions. So I ran the numbers using multiple formulas to calculate the odds of SNDK returning to all-time highs at $770. The math was compelling — realistically, it showed a very high probability of a move back to that level.
With conviction like that, I made the decision to deploy everything. I threw all the cash I had, about $200,000, into SNDK at around $630 with a plan to exit at $770.
For context, this was my entire retirement account, which I had grown from $60,000 to $240,000.
The Fatal Flaw: Death by a Thousand Checks
Here’s where everything went wrong, despite the trade working exactly as planned. I checked this position nonstop — every hour, every day — over the next week.
Every refresh tied my emotions deeper to the position until my systematic plan became secondary to my minute-by-minute anxiety.
Then it happened — one semi-scary headline about the Iran war hit, and I bailed instantly. I sold at $700, locking in somewhere between a $20,000-$40,000 gain.
It was profitable, sure, but SNDK later hit $902. By not sticking to my plan, I left twice as much on the table — what should’ve been a $60,000-$80,000 win.
Another major emotional pitfall is over-allocating: putting so much into a position that fear overwhelms your discipline. If the thought of the trade going to $0 makes you uncomfortable instead of calm, you’re sizing too big — and even the best plans become impossible to follow.
Quick self-test: Before every trade, ask yourself…
If I lost this entire position, would I feel queasy?
If the answer is yes, reduce your size. No system can work if your emotions are overloaded.
The cost of emotional decision-making isn’t just missing upside — it can mean realizing massive losses. I once over-allocated into Arista Networks (ANET) because I wanted a huge win.
A surprise headline shook me out, I panicked and I took an $80,000 loss on a trade that ultimately would have won if I had simply stuck to my plan.
Because I over-allocated, I couldn’t stick to my plan — I was too scared of what could happen next.
These experiences cemented one lesson above all…
When you use a rule-based system with clear entries and exits, the best thing you can do is execute the trade and let the rules work. Ultimately, predefined systems are the only way to filter emotion from action, and they make trading far easier over time.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
