Hi Mike,
I listened to the podcast segment with you discussing how to become a 7 figure trader on Chat with Traders this morning and it was amazing. I am a retail forex trader and I recently had a loss and it got me down. I was feeling so stressed but after hearing you speak on the podcast my confidence has taken a turn for the better. I actually feel a million times better about getting back into the markets. I was thinking about taking a break but now I will trade a lot sooner….
@MikeBellafiore
There are three Consistently Profitable Traders, with whom I work, who took a recent large loss and experienced the same trading distress. I will share the same advice I gave to them with you. Consider that two of these traders are 7-figure traders and one can (will?) be. Interestingly, two work at our firm and one works outside of SMB, so this distress is like one of those viruses that is going around.
The 1 hour rule
Give yourself one hour to brood and then move on. Call this this the 1 hour rule. I learned this technique from time management coach, Elizabeth Saunders, who learned this working with an Olympic athlete. This elite athlete needed to learn to prepare for a next event after a poor performance and thus crafted this rule to move on. As traders, we must move on as well for our next One Good Trade.
Sit with this feeling of disappointment. How does this make you feel? Probably frustrated and hungry to do better, right? Use this energy to map out solutions so you do not feel frustrated again. Execute on implementing these solutions into your daily routine.
For example, one trader lost too much on the front-side of a trade, got stopped out, and could not participate when the stock tanked. He was frustrated beyond belief. The solution? Create a front-side loss max, stick to it, and then still be able to participate in the large counter move.
Turn trading distress into trading progress.
*no relevant positons