Mental Trick/s for Dealing with Highs and Lows of Trading

[ponponwei]

@Johnscott31

The book ‘What to say when you talk to yourself’ may have a few techniques that help with this type of problem.

Got the Kindle book! Thank you!

@Johnscott31

While losses are never liked the sooner you truly accept them as nothing more than a business expense the sooner you will fly in this game.

See that’s the problem. When I lose, I think of all the “opportunity cost” and think of all the other things I could have done instead. Thankfully, I’ve learned to just stop trading for a bit instead of ovetrading and trying to win back my losses ASAP (never ends well). But I feel like this is a band aid solution and I need something more stable to rely on when things like this happen. Good mental habits honestly is what I need.

[ponponwei]

@Jckbt

Get excited about your system design, not the individual trade, that’s the boring part.

Interesting perspective!

@ele020

The best thing you can do is stop being emotional remain neutral even if you earn profits.
Its a saying that when you being trading you should leave your emotions at home.

I read this and I agree. But it is so much harder to put in practice.

@TTH

but more an acceptance of it as is, and the understanding leading to trust in its inevitable passing… the emotional body’s dance comes, passes and goes endlessly, it does not stick, it does not belong, it’s an accessory that we wear.

I like this angle. So it’s like not resisting the emotional effects of trading? But just acknowledging it and then not letting it linger? How do you not focus on it though if you’re seeing it… I suppose one could say it’s a learning experience and then just let it pass?

[ponponwei]

@dushimes

It’s cliche, but happiness is a choice, for the most part. Yeah, cliche for sure, and it sounds ridiculous. But, just because something is happening, it doesn’t mean you HAVE to feel a certain way. Sure, losing money sucks, but we don’t have to interpret the loss as invalidation or as our dreams going up in smoke.

Right. I agree. I don’t doom and gloom so much anymore thankfully but it just SUCKS having those feelings of disappointment and then getting the winning high. The emotional rollercoaster just feels… wrong lol. So I think I really need more of that detachment so I feel nothing whichever way it goes.

[ponponwei]

@Johnscott31

reducing the importance of money in my life

This is key right here!!!

@Johnscott31

I think many of the problems beginners face emotionally is they simply do not trust technical analysis - they want to believe it - but all their previous experience tells them it can’t be that simple.

When you finally have a solid trust in your method, rather than a blind hope, emotional trading trauma tends to disappear.

Also this. Lol you’re just throwing awesome pieces of advice everywhere!

@Johnscott31

You can’t be disciplined in trading and NOT in other areas of your life (not saying that’s you).

Elaborate on this one! What other facets of your life are you disciplined in? (Also: doesn’t that get too constricting being so disciplined all throughout?)

[Johnscott31]

@ponponwei

You think of the opportunity cost? Lol

You sound like a shopaholic - lol

In all seriousness why not think about all the money you saved by being out of the market in a timely manner?

After holding the odd loser for much longer than I should I soon realised taking a loss early is one of the best investments you can make

[ele020]

Well it can be achieved only with constant practice.

[TTH]

@ponponwei

So it’s like not resisting the emotional effects of trading?

Yes, resisting or trying to suppress them of course makes things worse. I am talking of something similar to meditation, a process of acceptance rather than control, you can notice thoughts and emotions without really buying stock in them, without taking ownership. IMO acceptance goes a long way towards peace of mind.

[ponponwei]

@Johnscott31

You sound like a shopaholic - lol

LOL. I used to be but not after the pandemic hit haha.

@Johnscott31

After holding the odd loser for much longer than I should I soon realised taking a loss early is one of the best investments you can make

Yup I’ve learned this too.

@TTH

Yes, resisting or trying to suppress them of course makes things worse. I am talking of something similar to meditation, a process of acceptance rather than control, you can notice thoughts and emotions without really buying stock in them, without taking ownership. IMO acceptance goes a long way towards peace of mind.

Have you heard of stoicism? I want to look into that to help me deal with being so emotional.

[TTH]

I know of stoicism but have not properly studied it. Best wishes with it.