Rohan simply gave up on his trading strategy and wound up placing a lost trade. Why did I do it again? he asks himself. Why am I unable to adhere to my plan? He feels bad. He is furious with himself for his error. A typical emotion in trading is guilt. There are numerous reasons why we could feel guilty. Guilt keeps us from making stupid mistakes over and over again, but is it always useful? Similar to other negative feelings, shame can get in the way of enjoyable, simple trade.
Guilt is a protective sensation. When we were young, our parents instilled moral ideals in us; these values were absorbed and kept in what Freud called the “superego.” When we break a rule, we feel fear and guilt out of instinct. Shame holds us accountable. It prevents us from breaking a moral rule that is significant to us. Some traders report that they feel awful after every trade. Given that their family considers trading as a form of gambling, they may have grown up thinking that gambling was wrong. If you were brought up with these values, you may be more prone to feeling guilty.
Is feeling guilty when you break your trading plan helpful? Frequently, it is not. Yes, guilt keeps us from betting a lot of money on a dubious scheme. Risking too much on a single deal is not a wise idea. It makes sense to feel bad if you trade with money you can’t afford to lose. In that instance, your guilt is shielding you from possible financial ruin. However, feeling guilty after a trading mistake can not be helpful. In these circumstances, you might wish to make an effort to reduce guilt. You won’t trade quietly and logically if you can’t manage your emotions.
Being guilty isn’t always helpful while dealing. When you feel guilty, you obsess about how awful everything is. You also have a propensity to believe that you are a “bad” person who needs to be punished. However, when you are actively dealing, there is no time for reflection. It does nothing. Instead of dwelling on your mistakes and feeling bad about them, you must always endeavour to find solutions if you want to stay ahead of the pack. You need to come up with imaginative solutions to difficult challenges, yet guilt prevents you from freely looking for original, novel alternatives. In light of this, if you feel guilty, tell yourself: “So I erred. That does not imply that I am unworthy or prone to repeating the error.
Sometimes guilt can serve as a form of protection, but when we trade, we frequently feel bad about the losses that come with the territory. Learn to manage your unproductive guilt if you are experiencing it. Long-term trading profitability increases with your ability to trade calmly and freely.