Getting Revenge On The Markets
This is a true story, shared by Deni Dantev — one of our traders who climbed from beginner to 6-figures.
FROM DENI:
We all know that we should approach trading with unwavering self-control, always keeping our calm and never letting a loss shake our resolve and discipline…I mean everyone knows that right?
Surely nobody is actually silly enough to get emotional and put on a trade after trade out of pure spite or to prove to the market that they were right and price MUST turn in the direction they expected it to.
It sounds silly when we talk about it after the fact, but when emotions take hold of you, it is very difficult to take a step back and analyze the situation objectively.
The example below can happen to anybody, it has happened to me countless times. When I saw one of our traders do this, I had to share it and hope that everyone will learn from it.
Let me know if you have experienced something similar.
You go about your normal trading routine, you stick to your strategy your rules, and everything is going great.
You win trade after trade (at least more often than not), the account is in the green, balance keeps growing, and you feel absolutely amazing.
Then suddenly, after a streak of winners, you execute a trade, and there it is - a loss!
It happens, we all know it is a part of trading. Nothing special about it - just move on, except you don't. It could be ego… it could be that the setup looks THAT GOOD. It could be that you followed the rules perfectly and cannot accept the loss.
So you enter the trade again - you did your part, now it is time for the market to deliver and BAM - another loss!
WHAT!? Twice in a row on such an amazing setup. One that checks all the boxes. What are the odds?
You feel helpless and out of control. Your brain doesn’t like this and desperately wants you to regain your grip. You can't let this go.
You have to make at least some of it back, so you enter the trade for a 3rd time and, naturally - drumroll please - another loss.
This is outrageous....what have you done?
You know better, right?
How could this have happened to you of all people.
You feel disheartened, maybe embarrassed and disappointed in yourself. You would do anything to have just taken the first loss and let it go, but you didn't…
However, your emotions aren’t done with you yet. There’s one more thing you do to completely wreck your trading account.
The Devil on your shoulder says, "this obviously is not reversing, I might as well give up on my short idea and go along with the trend".
This thing clearly has momentum. Look at how many times it stopped me out. If you can't beat them, join them. Go with the flow of the market. Smart people get over themselves and adapt.
And there you are, putting on trade #4, this time going the opposite way, purely out of desperation disguised as logic. Can you guess what happens next?
You guessed it, as soon as you enter the trade the market turned around. It hands you yet another LOSS. It’s almost as if someone is watching everything you do and then commanding the market to do the opposite. The timing feels unreal.
Disgusted, you walk away from your computer in disbelief, thinking to yourself - no way this just happened to me…
Does this sound familiar to you? Have you been there, done that?
The trades you saw were taken very recently by one of our students.
When I saw them, it immediately took me back. Back to all these times when this happened to me.
YES, it did, over and over… more times that I care to admit and I am sure it has happened to you as well, and it will happen again.
And if you have not had the distinct pleasure of experiencing this yet, believe me - you will.
So when you do, I hope you remember this story, or better yet, come back to this post instead of going down the rabbit hole.
Luckily, the solution is fairly simple. Be conscious that this happens to everyone. You ARE NOT a special kind stupid. Only then can you recognize it and overcome it.
When you find yourself in this situation, do the following:
Step #1. Take a breath and try to move on… there will be other trades, it is just one loss. If you feel disheartened even in the slightest, then move on to the next step.
Step #2. Take a break, go for a walk...take the rest of the day if need be.
The markets are not going anywhere. There will be plenty of opportunities down the road. By doing this, you will have the presence of mind not to make it worse.
Do what you need to do to clear your head before you come back to the screen, ready to stick to your process. Usually, the ‘thing’ to do is to take a break.
Let me know if you have ever been caught in a situation like that, what did you do? Did you catch yourself in time or did you take a few unnecessary hits before you realized what was happening?
Don’t be afraid to share your vulnerable stories.
Bonus: Want to Get Better at This?
#1. Go to the Calendar inside the community and register for live trading events (free). The next 6-figure trader going live is [instructor name].
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