Read on Twitter
HANDLE LOSSES LIKE A PRO - A thread
Here are a few hints and tips that, if you apply them, will help you to develop your resilience, to deal with losses and setbacks, and to bounce back more quickly.
DEVELOP POSITIVE BELIEFS AROUND LOSSES
Here are a few hints and tips that, if you apply them, will help you to develop your resilience, to deal with losses and setbacks, and to bounce back more quickly.
DEVELOP POSITIVE BELIEFS AROUND LOSSES
Accept that losses are a part of trading, and that setbacks and challenge are a part of achieving any challenging goal. Embrace the challenge. Tiger Woods famously said, âI smile at obstaclesâ.
KEEP PERSPECTIVE
Imagine the number of trades that you make in a year and put a
KEEP PERSPECTIVEImagine the number of trades that you make in a year and put a
single loss into the context of the total number of trades. Imagine someone making 5 trades a day, 25 a week, 100 per month, and over 1000 a year;
each trade, a losing trade, as a percentage of those trades is just 0.001%!
LEARN AND MOVE ON
each trade, a losing trade, as a percentage of those trades is just 0.001%!
LEARN AND MOVE ON
Know that every trade, every loss, every mistake, every setback has something valuable in it⊠LEARNING!
Learn from your losses, mistakes,
errors, setbacks. Ask yourself, what have I learnt from that experience?
How will I use it to make me a better trader? There is no failure,
Learn from your losses, mistakes,
errors, setbacks. Ask yourself, what have I learnt from that experience?
How will I use it to make me a better trader? There is no failure,
only feedback, and feedback is the breakfast of champions. Taking learning from losses and setbacks helps to release the emotional attachment to
the event â you have acted on the feedback, and can now move forward more easily. See the implementation of the learning from the loss
the event â you have acted on the feedback, and can now move forward more easily. See the implementation of the learning from the loss
as an investment in your future trading career!
TAKE A THIRD PERSON PERSPECTIVE WHEN EVALUATING YOUR LOSSES
Imagine watching yourself trading on a screen, or imagine standing behind yourself as you replay and evaluate your losses. This helps you
to evaluate and identify the
TAKE A THIRD PERSON PERSPECTIVE WHEN EVALUATING YOUR LOSSESImagine watching yourself trading on a screen, or imagine standing behind yourself as you replay and evaluate your losses. This helps you
to evaluate and identify the
key areas for improvement, whilst at the
same time removing the emotion of replaying the events again.
DON'T LET LOSING TRADE BECOME 'I AM A LOSER'
Refuse to let your losses define you as a person. Separate out the behaviour from you, the person.
same time removing the emotion of replaying the events again.
DON'T LET LOSING TRADE BECOME 'I AM A LOSER'Refuse to let your losses define you as a person. Separate out the behaviour from you, the person.
Separate a bad trade from a losing trade. What is the difference? A losing trade is one in which you traded your strategy, stuck to the rules and were disciplined, and yet had a negative P&L as the outcome. A bad
trade is a trade that was a non-strategy trade, and is a bad trade
trade is a trade that was a non-strategy trade, and is a bad trade
regardless of whether you made or lost money!
DEVELOP A POST-LOSS RITUAL ( ARIA)
A - Acknowledge in a low-key way that the losing trade was not what you wanted/expected.
R - Release; note the feedback and learning and âthrowâ the trade away
(almost physically)
DEVELOP A POST-LOSS RITUAL ( ARIA)A - Acknowledge in a low-key way that the losing trade was not what you wanted/expected.
R - Release; note the feedback and learning and âthrowâ the trade away
(almost physically)
I - Imprint or mentally rehearse what you wish had happened (x 2)
Affirm thatâs how I will do it next time
Affirm thatâs how I will do it next time
