On our trading desk there was a sudden bang, cuss word, and then chair slam.  The chair slam is when a trader pushes his chair back into its place with intentional over-velocity. I find this is an underused outburst of trading frustration. It’s better than the hand bang as that can lead to a hand break. A new trader had lost in a position and then worse lost his cool. He was Angry Trader Guy.

Still worse the new trader left for the day.

Our Floor Manager scheduled a meeting with the newb. This behavior was unprofessional, distracting, and harmful to the newb’s development. We would discuss privately a more productive way to react to a losing trade.

Pro traders can get upset. We are not Buddhist monks. I love the fire inside this trader. I love that he cares. I have broken keyboards after losing traders, though not in years.

But this response to a losing trade is anathema to the mindset best for you. Learn from each trade. If you are spending energy on acting out you are not learning from the trade.

• Were you in the wrong stock?
• Why did this trade fail?
• Did you enter at the wrong price?
• Set the wrong stop?
• Force the trade?
• Make one outside of your strengths?
• Not recognize the overall market was against your position?
• Make One Good Trade that just did not work?

Traders are very competitive. One might see the banging and cussing as a trader who is ultra-competitive who can’t stand losing. And that this is a terrific attribute to possess as a trader. In fact this trader was a former high-level athlete. Banging and cussing and mangling your chair AND then leaving is not competing.

Competing is learning to use that anger as information or regulating your anger quickly into hyper-focus.

Competing is learning as much as you can from that trade.

Also, do you really want to spend your career being Angry Trader Guy?

You can be better tomorrow than you are today!

Mike Bellafiore is the Co-Founder of SMB Capital and SMBU, which provides trading education in stocks, options, forex and futures. Bella is the author of One Good Trade and The PlayBook.

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