I do know this would possibly make you cringe however strive wanting on the worst commerce you’ve ever had in your commerce journal.
Evaluation the commerce setup that you just noticed. Take into consideration what went improper and ask your self, “Why the heck did I ever take that commerce within the first place? What was I pondering?!”
Extra importantly, “Was I even pondering?!”
You most likely simply took that commerce robotically primarily based on a well-known setup. On this case, your resolution was a results of your personal mind-set fairly than what the market was telling you.
Your worst commerce doesn’t even should be the one the place you’ve incurred your largest loss.
It may be a missed alternative, once you hesitated to take what may’ve been your commerce of the 12 months, or once you locked in earnings too early as an alternative of letting it experience. You would possibly’ve wimped out due to your worry of shedding, even when the markets gave each indication that this subsequent commerce could be a winner.
Possibly you’ll take a look at your worst commerce and discover out that you just made it once you turned completely detached to shedding that you just ended up blindly taking one commerce after one other simply to make up to your losses.
On this case, you stored insisting that you just had been proper and also you believed that you’ll finally beat the market. Keep in mind that revenge buying and selling can flip right into a nasty behavior and will end in giant drawdowns if not corrected.
The same old response to dangerous trades is simply shrugging them off.
Very similar to the reminiscence of getting rejected by crushes in highschool (not that it occurred so much to me), it’s simpler to easily push the reminiscence of a nasty commerce in the back of our heads, and falsely reassure your self that you just’ll put together higher subsequent time, after which transfer on to the following commerce.
However that’s not sufficient!
You must REALLY dig in into the issue and assessment the nitty-gritty of your dangerous trades. In any other case, you run the chance of repeating your errors. Irrespective of how painful or discouraging the duty is, you need to power your self to open your commerce journal and ask your self questions like:
“Why did I take the commerce?”
“Did I observe legitimate alerts after I closed my place?”
“Is ‘The way you doin?’ actually such a nasty pick-up line?”
Okay, possibly the final query is extra apt to your Saturday night time issues, however you already know what I imply!
In forcing your self to establish the feelings you felt once you made dangerous buying and selling selections, you would possibly be capable to see a detrimental sample in your habits and take actions to right it.
Unlearning dangerous habits and buying and selling practices may be tough, however they’ll actually deliver you one step nearer to controlling your feelings and changing into a greater dealer.