I cannot accept the losses
One of the biggest problems of any trader is accepting this essential part of trading business.
So how do you feel and behave when you believe this about yourself?
- Scared – “I cannot pull the trigger because it could end up being a loss!”
- Powerless – “It seems there is nothing I can do to remove the possibility of losing”
- Hesitated – “Something must be wrong with this trade, let’s wait another day, the Market just does not feel right”
- Annoyed/Frustrated – “I am trying as hard as I can, and yet here is another loss!”
- Angry – “Damn this Market and its stupid rules!”
- Reckless – “I am sure this trade is right, I will not let the Market play against me and stop me out with another spike, I will just put this trade on without a stop loss…”
- Inconsistent – “My trading system is just not working, I must change the rules to avoid such stupid trade in the future”
- Depressed – “It is all hopeless – how can I ever win if I keep allowing these losses?”
- Disgusted – “I swear I’ll never trade as long as I live!”
- Foolish/Embarrased – “I was so sure about this trade, I kept telling everyone how much money I’ll make in this one!”
Notice when you allow your brain to enter into any of these patterns of thinking. Take a look through the list, see what applies to you personally.
It is a great thing if we are able to catch ourselves breaking predefined trading rules, such as our Risk Management or Entry rules. However, it is our thinking patterns that lead to breaking the rules or to any other problems in our trading. Consider for a moment, have you ever caught yourself thinking any of the above thoughts?
Being aware of our thinking is much harder than being aware of the fact that we did not put a stop loss in a trade. If you learn catching the moment when you talk yourself into not putting the stop loss you will start working with the cause of the problem, not the effect.
So let’s reverse the original statement:
I can easily accept the losses
Now, this may not be true for you at the moment, but try to imagine how you would feel, behave and trade if this thought would be your reality.
- I am confident – the losses do not frighten me.
- I am comfortable with my trading system – I accept all parts of it
- I am at peace with anything the Market will do – I allow it to behave in any way it needs to.
- I am grateful for every opportunity to place a trade – whatever the outcome of that trade might be.
- I find all the circumstances helpful – any outcome is completely acceptable to me and therefore I am making myself available to learn from it.
- I am looking forward to getting a loss – it is the greatest signal the Market could possible offer to me.
Consider the last point – isn’t it really the greatest feedback the Market could ever possibly offer to you? The Market is not against you, it is simply there to teach. It is clearly telling you, from its perspective, that your view of the circumstances was not correct at the moment when you placed the trade. What did you believe about the current market situation just before you pulled the trigger? Take that belief, reverse it and you have the corrected point of view, available to you with Market’s help.
I you are serious about working with your beliefs, consider trying this method – Katie Byron’s “The Work”.