Emotions of winning and losing

trendie

trendie

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Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!
 
I have weeks between trades so I clog up the board ;)

Erm... I thinks your post is interesting btw but I agree more with the in at the deep end philosophy tbh
 
I dunno. When a newbie sees a running loss, they're in a state of woe and hope, possibly pleading and praying. And when it's a running profit, they are in a state of elation and confidence. They are definitely not emotion free during the trade.
 
I'm emotion free (until I go into a loss lol) but I find myself unable to concentrate on other tasks when I walk away from a trade and leave it running -which was part of my plan to get used to having money on the line. Suppose it's because I'm poor
 
trendie said:
Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!
Click to expand...

As a newbie trader, I've been on an emotional rollercoaster for 6 months, but the more I trade, the easier the emotions become, win or lose.
I think that, if you have a rational, methodical approach, you can factor out the worst of this rollercoaster.

Last summer I took the kids to a water park in Spain, and watched people jumping off the Kamikaze water slide. This is like a 50 metre vertical drop, and looks absolutely terrifying. After watching for 30 minutes, I realised that no-one had injured themselves. The perception of danger was worse than the reality, so I climbed up and took the jump - it was an awesome experience!

It's the same in trading - if you stick to a strict discipline, there is little danger, and emotions are reduced.
 
Much like rock climbing. I see people falling off all the time but because they're roped, don't get injured. Still not nice when you're hanging off a steep overhang with two fingers and there's a big drop under you, though...
 
shadowninja said:
Much like rock climbing. I see people falling off all the time but because they're roped, don't get injured. Still not nice when you're hanging off a steep overhang with two fingers and there's a big drop under you, though...
Click to expand...

Yeah - great analogy! I was a rock climber for 10 years in my youth, and apply the same mind-set to my trading!
Fixing good protection will save you in a fall.
I remember a famous solo climber in the 80s called Jimmy Jewel. He had solo climbed many of the Uk's hardest rock climbs, but tragically fell to his death off a simple climb.
Trading without a stop loss is like climbing without a rope.
 
aleclaw said:
Yeah - great analogy! I was a rock climber for 10 years in my youth, and apply the same mind-set to my trading!
Fixing good protection will save you in a fall.
I remember a famous solo climber in the 80s called Jimmy Jewel. He had solo climbed many of the Uk's hardest rock climbs, but tragically fell to his death off a simple climb.
Trading without a stop loss is like climbing without a rope.
Click to expand...

Yep. And you want some slack but not too much. :D
 
trendie said:
Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!
Click to expand...


Get a method that puts cash into your bank account, week in week out, and you will have no problems sticking to the method regardless of whether the losses come first or if they are more frequent.

-Take Whichever Way Works-
Bruce Lee
Jeet Kon Do
 
mrsoul said:
Get a method that puts cash into your bank account, week in week out, and you will have no problems sticking to the method regardless of whether the losses come first or if they are more frequent.
Click to expand...

The only methods that are profitable week in, week out are scalping methods. Taking dozens if not hundreds of trades a day.

Not everyone wants to be or can be a scalper.
 
donaldduke said:
The only methods that are profitable week in, week out are scalping methods. Taking dozens if not hundreds of trades a day.

Not everyone wants to be or can be a scalper.
Click to expand...

And not everyone can determine which scalps ought to be left to mature into a swing or position play as the action unfolds. Or how to manage it so it becomes a risk free ride.
 
trendie said:
Its occurred to me why we get hurt by losing.
When you initiate a trade, you enter a grey-zone of uncertainty.
The market needs to move to either confirm our analysis, or not.

Losses hit quicker than wins.
For example, if you're going for a 3:1 reward-to-risk, the chances are if you lose, you get immediate feedback. But, when you win, you have to wait longer to be proved right, so you remember the hurt of losing more because of its immediacy.

I wonder if the quicker feedback of taking a loss has some bearing on how we feel about them, as opposed to waiting longer for wins.
This assumes a greater reward than risk.

If you go for 1:1, dunno. Perhaps 1:1 should be a starting point for newbies to get past the emotional impact.

EDIT: If you're wondering why I have been posting too much. I have moved to a higher TF, and have way too much time on my hands. sorry!
Click to expand...

donaldduke said:
The only methods that are profitable week in, week out are scalping methods. Taking dozens if not hundreds of trades a day.

Not everyone wants to be or can be a scalper.
Click to expand...

counter_violent said:
And not everyone can determine which scalps ought to be left to mature into a swing or position play as the action unfolds. Or how to manage it so it becomes a risk free ride.
Click to expand...

The market is not a mystical force to be combated with only certain strategies.

the market is not W:L ratios nor trade by trade results. Listen to Virtuos0 and read Socrates work, it all makes perfect sense if you learn how to read. Every book and guru is full of sh1t.

The market is people; banks, traders, hedge funds, CB's, IB's and HF's and common sense! Take a step back back, think, use that shizzle between your ears. Dump the books, the forums, the PDFs, advice and so called prop shop pros. Don't be the cannon fodder. Look past the W:L 'dbpheonix' ratios and understand that trading is marathon, not a sprint.

It is blatantly obvious, "it is screaming at you", just like PodG says. Where to buy and sell is just a small part of what's needed to succeed.

W:L ratios and all that shizzle should be thrown out of the same window as the indicators... look at a bigger picture and you may get somewhere. Those that can't take months of ups and downs to reach their goals should definitely quit nao!

Think! Really really think, don''t just look for an edge... understand the market and your edge is like breathing... knowledge is king!
 

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