Friday, August 14, 2015

Traders will always feel regret - accept it

(ideas from the book : Market Mind Games)

 No matter how we trade, there will always be a feeling of regret.

Let us see how this comes about. The Trader takes a trade. Then, one of many actions can occur:

1. Went Long and market came down
2. Went short and market went up
3. Went Long, market went up - moved stop to break even, got stopped out on dip, then market went much higher.
4. Took an exit at a predefined level, market went much beyond it, left lot of money on the table.
5. Planned to catch the full trend, had an exit which was far, market moved in favor, then turned back, so had to give up all possible profits.
6. You have the perfect trade, then also there will be regret as to why you did not achieve such perfection in the past. More regret is likely when you do not achieve the same perfection in future trades.

There are many more possibilities, but I think you get the idea.

So, no matter what the trader does, there will always be a better way.   

Traders should accept the fact that a feeling of regret is part of the business. It is going to happen every day, during the trade, after the trade. Let the feeling come in! We are humans, so we should accept the emotions that come to humans.

It is a challenge to accept the regret without letting the feelings overwhelm you. But, then, trading is a challenge!! 


Omkar Patki said...

Great teaching.

Manish Chandra said...

There ain't a better way to say... "Market is the King, God.." Admit it, Accept it, Embrace it. .! :)

Unknown said...