Boredom: The trader wants some “action” so they put on a trade. Trades are for when entry signals are hit not to alleviate boredom.
- Pessimism: The trader starts to have a negative attitude about losing money. Be positive if you are learning form losses becasue you are paying tuition for this education.
- Frustration: Frustration comes from expectations not being met. Don’t focus on your P& L, focus on executing your trading plan.
- Overwhelm: Focus and simplicity are the keys to profits, complexity and lots of information are the road to be overwhelmed and unprofitable.
- Disappointment: Disappointment should not come from losing trades, disappointment should only come because of a lack of discipline in trading your plan.
- Doubt:Only trade a system AFTER you have thoroughly researched, back tested, or studied it in real time. Trade only with proven faith in a system, naive hope quickly leads to doubt and failure.
- Worry: Trading a size that makes every trade just one of the next 100 will alleviate most of your worries over any one trade. Trading big is sure path to worry, stress, and bad decisions.
- Blame; Blaming the market for losses is like blaming the clouds for rain. The rain will come, you are the one that gets to choose where you are standing with the rain falls.
- Discouragement: “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.” -Paul Tudor Jones. If you can’t keep of the right mind set to get through the losing you will not make it to the winning.
- Anger: Anger generally comes when we do not get what we want. Choose carefully what you want and understand what you have to go through to get there.
- Revenge: Trading to get even with a stock or the market is the most destructive thing that a trader can do. This usually happens in the late stages of a new trader’s destruction as they trade bigger and more obsessively because they have to get back to even and prove something to the market and themselves. It is like a surfer getting mad at the ocean for a wave, the ocean doesn’t care about the surfer or even know that they exist. It is the same thing with the market, it is neutral you create your own results.
- Rage: Feeling or expressing violent uncontrollable anger usually leads to broken key boards, screens, desks, and accounts. The end is very near for the trader at this point.
- Jealously: When can not even be happy for other traders profits or P&Ls you have become bitter. Good traders are not bitter people.
- Insecurity:When you doubt your very ability to be a trader you have two choices. #1 Do what you need to do to make yourself a profitable trader. #2 Trading is not not for you and you need to go find whatever you really enjoy doing in life.
Victim:When it is no longer your fault that you lost money but the fault of others that is the end. Whether it is the market makers, the big money managers, scalpers, dumb money, smart money, mass psychology, the madness of crowds or whatever the target of blaming happens to be. It does not matter, when you give over the responsibility of the outcome of your trades to someone of thin besides yourself your trading career is over.
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