The value of tech stocks fell on Thursday. Mark just lost 5000 rupees on his ITC stake. Even though it is Friday morning, he still feels bad. He is unable to forget his losses. Though he has been making an effort, his heart isn’t in it as he scans over a number of charts. He had observed a few potential setups, but he hesitated when it came time to place a transaction. He is only able to focus on the losses he sustained yesterday. As he considers the money he might lose today if he isn’t careful, he experiences fear. But you can’t let failures deter you from trading the markets. You must trade with composure, objectivity, and conviction.
When you have significantly lost money, it is tough to remain impartial. After a defeat, it’s natural for people to feel disappointed. But you can’t let it worry you if you want to trade profitably. You have to sincerely believe that it is irrelevant in some way. There are several ways to trade more objectively. Trading with money you can afford to lose will make losing less painful. To reduce the amount of money you will lose, you can also do smaller deals with restrictive stops.
However, you finally need to figure out a way to depersonalise the entire trading process. When it’s just business, you can operate more freely, creatively, and decisively. Establishing your identity firmly in a different reality is the best way to keep your independence and impartiality. You shouldn’t regard trading as your primary means of support. Really, it’s simply a job. Making it your reason for being will risk your reputation and your money, and the added psychological pressure can lead you to cave. But if you stake your identity in something else, you’ll be able to handle trading setbacks.
Trading should ultimately just be business. Don’t let it determine who you are. Your family, your friends, or the leisure activities you value most should serve as the foundation for your identity. The events that take place during the trading day won’t have much of an effect on your identity if you have a strong foundation outside of the trading world. You’ll be more at ease and capable of handling pressure and setbacks. Why should you consider it important? Losses, setbacks, and market volatility won’t bother you if you ground your identity in other things. You’ll have more freedom to engage in market trading with an innovative mindset that will finally lead to long-term financial success.