Developing Emotional Resilience: Bouncing Back from LossesOkay, fellow TradingViewers, it’s time we tackle a topic that may make you a bit uncomfortable. But, rest assured — it’s for your own good! Today, we explore the realm of emotional resilience and, more precisely, how to bounce back from losses.
Losses are inevitable. Ask anyone — even the big dogs in the industry have gone through painful losses (as you’ll see at the end of this write-up). Drawdowns so severe that they’ve nearly put hedge funds out of business (just ask Ray Dalio). And yet, bouncing back from losses is what has helped these one-time losers to develop emotional resilience and make the best out of the experience.
Acknowledge the loss, but don’t overblow it
Accept that losses happen and they’re a natural part of the trading journey. No matter how skilled or successful you are, you will have losing positions every once in a while. First, make sure you find out what went wrong. And second, don’t dwell on the losses too much and don’t let them cloud your prospects of becoming a better trader.
Size your positions according to risk tolerance
Never let a single position wipe out your entire account if it turned against you. We know how attractive it is to bet big on currencies swings spanning European countries . But keep in mind that, in such case, the old market adage "You're as good as your last trade" will hold true and it may not be pretty.
There are two main ways to prevent the wipeout of your account with a single trade — don’t bet too big (or use too much leverage). If you do bet big, make sure you have a tight stop loss that won’t let your balance get washed out and drawn underwater. Always think about defense before you think about offense.
Let your strategy take care of your trading
You won’t have to be emotional if you let your strategy take care of your trading. Having the right trading plan will eliminate the need to react on the spot and make rushed decisions out of emotion. A solid strategy can empower you to withstand even the harshest market conditions with your chin up and trading account unscathed.
Embrace the power of habit and routine
In trading, consistency is key. Create for yourself a nice and easy-to-follow trading routine. This may include making your cup of coffee before you sit to do some chart reading. Or get a workout in before you read the daily news. Whatever will help you stay disciplined and emotionally balanced — do more of that.
Invest in yourself and then trade the markets
Your most valuable asset isn’t your trading account — it’s you. Invest time in learning, reading, watching interviews of successful traders and financiers. Read books on finance and trading, study the economic calendar , or sign up for a paper-trading account to test your trading skills risk-free. The more knowledge and practice you soak up, the more resilient and prepared you will become.
Know when to step back and get a break
Sometimes, the best thing to do after a loss is do nothing at all. It’s understandable if you feel emotionally unstable, off-kilter and overwhelmed when the markets gives you a slap in the face. Especially if you’re just starting out in the volatile trading space. What to do then? Unplug, unwind, recharge. The market will still be there tomorrow — go touch grass and come back with a refreshed perspective.
Celebrate the wins — no matter how small
Trading has to be about more than just coping with losses. Give yourself a nice pat on the back for every little victory. Made a successful trade? Or even got out at breakeven thanks to your stop loss? Perfect. Recognize and celebrate these moments. They’re little milestones to remind you that you’re on the right path to success.
Loss advice from the big dogs in trading
Let’s wrap up some with loss advice from the world’s best traders and see how they dealt with the blows of Mr. Market.
Paul Tudor Jones , hedge fund manager: “Losses are not your problem. It's how you react to them. Ignore losses with no plan, or try to double down on your losses to recoup, and those losses will come back like a Mack truck to run over your account.”
Ray Dalio , founder of the world’s largest hedge fund Bridgewater, on how he viewed a near-bankruptcy experience: “I needed to balance my aggressiveness and shift my mindset from thinking ‘I’m right’ to asking myself, ‘How do I know I’m right?’ It was very, very painful, yet it changed my way of thinking. It was one of the best things that ever happened to me.”
George Soros , pioneer of the hedge fund industry: “It’s not whether you’re right or wrong, but how much money you make when you’re right and how much you lose when you’re wrong.”
Let’s hear from you
How do you usually deal with a trading loss? What’s the best thing a loss has taught you? Comment below and let’s spin up a nice discussion!
Rebound
✅VIX LONG FROM SUPPORT🚀
✅VIX is about to retest a key structure level of 12.50$
Which implies a high likelihood of a move up
As some market participants will be taking profit from short positions
While others will find this price level to be good for buying
So as usual we will have a chance to ride the wave of a bullish correction
LONG🚀
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USD-CHF Strong Resistance Ahead! Sell!
Hello,Traders!
USD-CHF keeps growing
In a strong uptrend but
The pair looks locally
Overbought so as it
Is approaching a strong
Horizontal resistance
Level of 0.9244 a
Local bearish correction
Is to be expected
After the retest
Sell!
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✅NZD_USD GROWTH AHEAD|LONG🚀
✅NZD_USD is approaching a rising support
So according to our strategy
We will be looking for the signs of the reversal in the trend
To jump onto the bullish bandwagon just on time to get the best
Risk reward ratio for us
LONG🚀
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GBP-CAD Long From Rising Support! Buy!
Hello,Traders!
GBP-CAD is trading in an
Uptrend along the rising
Support line and the
Pair is already making
A bullish rebound from
The support so I think
That we will see a
Further move up
Buy!
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BTC broke new highs, but what next?Since Feburary 2024, BTCUSD has surged to reach an all-time high of 74,000.
However, after reaching the level, the cryptocurrency has reversed by 18%, down to 61,000.
If the price breaks below the 38.2% Fibonacci retracement level, anticipate downside to the 61.8% retracement level.
However, if that happens, the 52,000 level could be a good support level for the BTCUSD to rebound.
Base on a similar scenario in 2021...
BTCUSD broke new highs (64,750) before reversing lower
Reached 61.8% retracement level before rebound
Created higher high of (68,900)
We are back!! $SIA(C6L.SI) Showing sign of bottomHas been away awhile from here! Hope everyone is doing well in the stock market! Let's dive into our analysis on SIA C6L
Recent fall shows signs of volume supporting the price at the previous low in the 5 mins chart (yellow box).
With price moving slightly higher could be a sign of short term rebound is on the way.
Our trading method:
Taking advantage to this possible short term rebound & maximizing the returns with our low exchange rate of MYR to SGD, we look into SIA's DLC issue by #societegenerale, TSX:SIA 5xLongSG250709(DZTW.SI), long position due to lower outstanding%, lower DLC price, & more sensitive to the underlying securities.
@roundnsurge
Share your view about TSX:SIA (C6L.SI) in the comment section.
About our analysis :
Utilizing the dynamic insights from a 5-minute chart. By closely examining this timeframe, we dissect the intricate volume and price transactions of significant market players. Our aim is to identify short-term support and resistance levels, enabling informed trading decisions. Through this meticulous analysis, we decipher price patterns and trends, providing valuable guidance for traders navigating the fast-paced realm of stock trading.
Disclaimer:
The information provided in this post is for informational purposes only and should not be considered as financial or investment advice. Any action you take upon the information in this post is strictly at your own risk. We are not responsible for any losses or damages that may occur in connection with the use of this information. Always do your own research and consult with a qualified financial advisor before making any investment decisions. The views and opinions expressed in this post are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer, or company.
#shorttermtrading #SGX #demandsupplytrade #pricevolumeanalysis #roundnsurge #DLC #sia #dailyleveragecertificates
AUD-JPY Bullish Rebound Ahead! Buy!
Hello,Traders!
AUD-JPY fell down sharply
And the pair is locally oversold
So I am locally bullish biased
And I will be expecting a
Local bullish rebound
From the support below at 97.700
Buy!
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