Global Forex Trading: Re: [4XONTARIO] Taking Setbacks in Stride

I really liked this--thanks for posting this and the many interesting bits
of knowledge you bring to us--
hope you don't mind that I shared it around---

As always..
--Clint

On Mon, Mar 23, 2009 at 5:35 AM, 4XMEONTARIO <fxmelights@yahoo.com> wrote:

>
> Many traders are making profits during these volatile times. Are you? In
> many ways, it takes the right mindset to profit. While the media covers
> possible downturns, the winning trader astutely anticipates when the markets
> will turn on good news and fall on bad news. It can be frustrating. But
> exciting too.
>
> Many traders say they like the thrill of competition. Trading is fun. And
> even though trading coaches preach the virtues of trading in a calm,
> rational manner, many are attracted to the excitement of the trade. You can
> get a pleasant rush when you execute a trade and a sense of accomplishment
> when you win. But with the thrill of victory can come the agony of defeat,
> especially when you have wrongly anticipated where the markets will go next.
> But it is vital to handle defeat, and know how to come back from behind when
> necessary. Winning traders don't dwell on past mistakes or what could have
> been. They look toward the future and believe that they can put in a heroic
> effort and turn even a major setback into a victory. The more you can learn
> to accept defeat, the more profitably you will trade, especially in volatile
> markets where a bullish market is likely to turn bearish with the latest
> economic forecast.
>
> It is much easier to take risks and feel optimistic when you are ahead of
> the game. When you have plenty of extra capital, for example, you aren't
> afraid to risk money since you know you can afford to lose some of it and
> still trade. When you are down and must trade aggressively, however, it is
> hard to muster enough optimism to get you through. It is natural to feel a
> little afraid. Perhaps it isn't the actual loss we may experience that is so
> bad, but the feeling of dread and regret we feel after we have lost. We mull
> over what we could have done to prevent the loss. Behavioral economists say
> that such feelings of regret are so powerful that traders close out trades
> prematurely and make other trading errors just to avoid such unpleasant
> feelings. Despite these potentially debilitating feelings, there is much you
> can do to accept and recover from defeat.
>
> Defeat is especially hurtful when we don't anticipate it. If you get your
> hopes up, only to have them unexpectedly dashed, you will feel particularly
> down and out. If you anticipate a loss, in contrast, you will not be as
> disappointed. "Go in expecting to lose" is what some traders say. When you
> go in with this attitude, not only will you be able to anticipate a setback,
> but you'll also take precautions to minimize the impact of the potential
> loss. For example, you'll devise a detailed trading plan and control risk
> when you face the possibility of a losing trade. The way you look at losses
> can also help you recover from them. If you take it personally by putting
> your self-esteem on the line with your money, you will ding your ego. But if
> you take an "it is just business" attitude, you'll be able to more easily
> objectify the trade and its outcome. Similarly, if you view a loss as
> evidence of your incompetence, you will naturally feel beaten. But if you
> look at a loss as a learning experience, a way to grow and a way to build up
> your trading skills, you will welcome a loss. Seasoned traders look at a
> series of losing trades (assuming the losses reflect a problem with an
> outmoded trading method) as an intellectual challenge, a puzzle requiring a
> solution. When you view a setback as a problem you can solve creatively, you
> will be less bothered by a setback. Finally, it is vital to take an active,
> problem solving approach, rather than passively wallowing in self-pity. More
> limited psychological resources are wasted worrying about the implications
> of a setback than just facing it head on and actively devising a solution.
>
> Feeling defeated is a state of mind. You never need to feel defeated. You
> may feel a little down at times, but you are never beaten if you refuse to
> give up. Cultivate a fighting spirit and never let a setback get the better
> of you. In today's markets there are many opportunities. Winning traders are
> those who take setbacks in stride and move on to the next possible
> opportunity.
>
> Many traders are making profits during these volatile times. Are you? In
> many ways, it takes the right mindset to profit. While the media covers
> possible downturns, the winning trader astutely anticipates when the markets
> will turn on good news and fall on bad news. It can be frustrating. But
> exciting too.
>
> Many traders say they like the thrill of competition. Trading is fun. And
> even though trading coaches preach the virtues of trading in a calm,
> rational manner, many are attracted to the excitement of the trade. You can
> get a pleasant rush when you execute a trade and a sense of accomplishment
> when you win. But with the thrill of victory can come the agony of defeat,
> especially when you have wrongly anticipated where the markets will go next.
> But it is vital to handle defeat, and know how to come back from behind when
> necessary. Winning traders don't dwell on past mistakes or what could have
> been. They look toward the future and believe that they can put in a heroic
> effort and turn even a major setback into a victory. The more you can learn
> to accept defeat, the more profitably you will trade, especially in volatile
> markets where a bullish market is likely to turn bearish with the latest
> economic forecast.
>
> It is much easier to take risks and feel optimistic when you are ahead of
> the game. When you have plenty of extra capital, for example, you aren't
> afraid to risk money since you know you can afford to lose some of it and
> still trade. When you are down and must trade aggressively, however, it is
> hard to muster enough optimism to get you through. It is natural to feel a
> little afraid. Perhaps it isn't the actual loss we may experience that is so
> bad, but the feeling of dread and regret we feel after we have lost. We mull
> over what we could have done to prevent the loss. Behavioral economists say
> that such feelings of regret are so powerful that traders close out trades
> prematurely and make other trading errors just to avoid such unpleasant
> feelings. Despite these potentially debilitating feelings, there is much you
> can do to accept and recover from defeat.
>
> Defeat is especially hurtful when we don't anticipate it. If you get your
> hopes up, only to have them unexpectedly dashed, you will feel particularly
> down and out. If you anticipate a loss, in contrast, you will not be as
> disappointed. "Go in expecting to lose" is what some traders say. When you
> go in with this attitude, not only will you be able to anticipate a setback,
> but you'll also take precautions to minimize the impact of the potential
> loss. For example, you'll devise a detailed trading plan and control risk
> when you face the possibility of a losing trade. The way you look at losses
> can also help you recover from them. If you take it personally by putting
> your self-esteem on the line with your money, you will ding your ego. But if
> you take an "it is just business" attitude, you'll be able to more easily
> objectify the trade and its outcome. Similarly, if you view a loss as
> evidence of your incompetence, you will naturally feel beaten. But if you
> look at a loss as a learning experience, a way to grow and a way to build up
> your trading skills, you will welcome a loss. Seasoned traders look at a
> series of losing trades (assuming the losses reflect a problem with an
> outmoded trading method) as an intellectual challenge, a puzzle requiring a
> solution. When you view a setback as a problem you can solve creatively, you
> will be less bothered by a setback. Finally, it is vital to take an active,
> problem solving approach, rather than passively wallowing in self-pity. More
> limited psychological resources are wasted worrying about the implications
> of a setback than just facing it head on and actively devising a solution.
>
> Feeling defeated is a state of mind. You never need to feel defeated. You
> may feel a little down at times, but you are never beaten if you refuse to
> give up. Cultivate a fighting spirit and never let a setback get the better
> of you. In today's markets there are many opportunities. Winning traders are
> those who take setbacks in stride and move on to the next possible
> opportunity.
>
> From MarketWise:
>
> Regards,
> Elias
>
>
>

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