"After a big loss, stop forcing the next big trade Following his catastrophic 2009 short squeeze loss, Raoul Pal deliberately avoided loading up on new high-conviction bets and instead focused on rebuilding slowly and cautiously — 'you can't help it, you're scarred.' He warns that the most dangerous post-loss behavior is watching someone else make a fortune on one trade and then trying to manufacture a similar narrative: 'Kyle Bass, a bunch of these guys make a ton of money in one trade and try and force a narrative — and it doesn't work.' The lesson is concrete: after a major failure, reduce position size, do the analytical work without the emotional pressure of needing a comeback, and let the next good opportunity emerge rather than hunting it. Source: Raoul Pal, Real Vision, Best and Worst Trades with Raoul Pal"