A few weeks ago I shared some ideas on how to best manage your mindset when very little goes right. This was based upon a session which started out with missed opportunity followed by a period of sideways chop.

You can see the prior article here if you missed it – https://yourtradingcoach.com/trader/managing-your-mindset/

I thought we should revisit this topic today, because there is a VERY important point tucked away at the end of that article. Almost like a post-script or late addition to the article.

And it was essential in helping me manage MY mindset during this recent session.

<image: Managing Your Mindset - 2>

It’s a little compressed so that I could fit the full sequence on the chart. But that’s fine. Actual trades don’t matter for today’s article.

Let’s step through the sequence and see what’s happening.

<image: Managing Your Mindset - 2>

<image: Managing Your Mindset - 2>

<image: Managing Your Mindset - 2>

<image: Managing Your Mindset - 2>

Time to step back and reassess. The total loss is minimal here. But I’m approaching 11am which acts as an unofficial time-stop, if I haven’t got a good read on today’s market action.

Of note though, all attempts to trade so far were in the direction of daily-range expansion. That’s clearly not working.

And I do like the “almost rounded-top” that is occurring here. With movement lower sure to trigger sell orders.

<image: Managing Your Mindset - 2>

I sent out a social media post the day after this, with a reminder that sometimes all it takes is one good trade to make a session.

This was one of those times.

One good trade. The session is in profit, on a day when I’m not aligning well with the market. I’m taking this and calling it a day.

THE ESSENTIAL KEY POINT…

<image: Managing Your Mindset - 2>

<image: Managing Your Mindset - 2>

The prior article provided some methods for managing mindset. One in particular was evident today – when chopped up, stand aside till there is a break from the current chop zone.

But even MORE IMPORTANT is something included towards the end of the prior article – a general underlying pre-acceptance of all possible losses.

I am completely OK with taking a full session loss.

Let that sink in for a second.

And consider how that might be different to the way you trade.

When I got trapped on the first trade… and then chopped up not once but twice… sure there was some annoyance and minor frustration… but it was all just part of the game.

A completely normal occurrence.

One that I accept.

Which frees me to make the best possible decisions I can, in the time that remains till the session stop.

We discussed this a few years ago in a prior article – Pre-Accept All Possible Losses.

– – – copy / paste from that article – – –

Accept all possible losses before entering the battle!

In fact, I take it a little beyond acceptance.

I EXPECT it.

It’s like acknowledging that the default future is for a full session loss… decreed by the Trading Gods as inevitable unless I can demonstrate sufficient skill to prevent it.

Most traders operate like this:

<image: Pre-Accept All Possible Losses>

And the result is performance anxiety, doubt, hesitation, FOMO and all myriad of other problems.

My plan is to operate like this:

<image: Pre-Accept All Possible Losses>

This doesn’t mean I want to end in drawdown. I will do everything in my power to defy the Trading Gods and finish the day somewhere to the right of that line.

It simply means that I’m absolutely fine with the day ending at a complete loss. I’ve pre-considered the outcome. And accepted that this is something I can manage. Something I can survive. And something that I can overcome.

– – – end copy / paste – – –

Consider this:

Is your decision making built upon a foundation of safety; that no matter if the absolute worst outcome presents today it’s all ok and you will recover in future sessions.

Or is it built upon a foundation of fear; that doesn’t even like to think about the potential for session loss?

Because the fact is that if you are not completely 100% ok with a full session loss, then you have no business trading today. You need to cut position size and risk. And quite possibly go back to the sim to build confidence in both yourself and your strategy.

Happy trading,

Lance Beggs

 


 

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2 Comments

  1. Thanks Lance. Another intriguing insight to how to handle current life challenges as opposed to managing emotional distress.
    As a newbie, I am facing such challenges. However, I am making continued progress in identifying and resolving them.

    1. Hi George, It’s good to hear you’re making progress. That’s the name of the game. Never-ending progress. Even with experience we’re never perfect at managing emotions. We just get better at it. A constant work in progress.

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