Q and A – Psychology (backed dated December 10th, 2017)

Some Risk Management Questions:

  1. Was the loss of money worth all the emotional pain and financial heartache?
  2. If you had the opportunity to do that trade or investment again, what would you do differently.

Tales of Losses

  1. What is the biggest loss you have personally taken in the market?
  2. What was your emotional experience during this event?
  3. What went through your head and heart during this event?
  4. Were you in emotional control or was your destructive ego in control?
  5. Was it worth it my dude?
  6. What did you learn from this experience? If nothing, Then this loss will probably repeat again in the future.
  7. What new disciplines have you now implemented when you invest or trade to protect yourself against losses

Answers:

  1. In hindsight it definitely was not worth the emotional pain and heartache. sometimes I still think about where my account would be if I just managed my risk better.
  2. Yes, much differently. I would definitely decrease my risk/exposure by reducing the size of my positions.

tales of losses

  1. Well overall I am looking at ~ -6K to date… That is just the cost of learning to trade I guess. The biggest lose in a single day would be $1,300 and then a few times $1,000 in a week.
  2. & 3. Emotionally once my account balance got to a certain point I stopped caring whether I lost or won my trade. I felt my account was at a point of no recovery so self destruction didn’t matter. In hindsight again this doesn’t make sense, as I lost trades I increase my position size to try and make up for what I lost. Eventually that lose gets to -100% and now I cant take advantage of other trade opportunities.

4.  I was not in emotional control at all.

5.  Of course not, now when I think about all the times I’ve blown up I don’t think it                was ever worth it.

6.  I learned what puts me over the edge and in that not give a f*%k state of mind. I                know I am a good trader but I have to consistently and continuously be a good                    trader 100% of the time. I plan to practise proper Risk Management and self                        discipline.

 

Comment you loss story below 🙂

 

 

 

 

 

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