The F’s of Trading …. No G ….
Fear … well of course fear. But what is the other one?
Frustration.
In fact, tell me if I am wrong. The emotions most difficult to deal with are
1) fear of missing out on a move
2) frustration that you did miss out or got stopped out
3) fear of losing money….. IN THAT ORDER.
Trader after trader after trader tells me it is #1 that is the most troublesome i.e. causes the most losses. I have even heard a quant from a big hedge fund admit to feeling that way. (Quants have feelings?) ….
In fact, a few moments ago, I fell prey to #1 and #2 – and you know why? Because I was tired. I just finished reviewing the new self-driven workshop and I just reviewed the research that says if we are tired we take greater risks… and I guess I felt obliged to prove them right. Now I am my own self-inflicted victim of #2 because I acted out #1 because I broke my BIKB rule – and traded when I was tired.
Idiot.
Tags: trading psychology
Loudly verbalizing “You are such an idiot” whether directed at himself, (or once or twice to the chair umpire) seemed to work very well for John McEnroe. The following serve was usually an ace.
Well for one I acted idiotic….
as to why? I don’t believe in the whole self-talk idea…. your self-talk is what it is. The feelings behind it are what drives you – regardless of the words you say. I have no fear of negative self-talk…. in fact, I believe that if you understand it, verbalizing it (even saying it in public) can be the most powerful tool we have. Trying to use your intellect to change your language is what makes the problems worse… as that does not parallel the fundamental role of feelings and emotions in how our brain perceives, decides and acts.
but… thank you very much for bringing it up – DKS
Sorry you had a tough trading day. But please don’t compound it by calling yourself an “Idiot”. Why would you reinforce that detrimental self-talk?
If you ask brokers, you’ll find that the number one reason that traders blow through their accounts is because they add to losing trades instead of taking the loss. So Ray may have hit the nail on the head.
Hi Denise
Sorry to hear you had one of those days. I know the feeling well.
I’d add 2 more fears – fear losing and fear of being wrong.
I hope tomorrow brings in a better trading day for you.
ray
You ain’t wrong!!