Trader Mindset MMS #30 - The Types Of Losses
Sep 27, 2023
Traders learn to embrace losses as a natural part of the journey. Self-reflection is key, allowing for a deeper understanding of motivations and emotions. Adaptability is highlighted, especially for budget-conscious traders. The discussion parallels eSports and surfing, stressing patience and flexibility. Personal responsibility is crucial for making effective decisions. Finally, the episode emphasizes developing emotional resilience and a structured approach to navigate challenges and achieve success in trading.
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Accept Loss as Part of Trading
- Trading requires rewiring your brain to accept loss as part of the process.
- Differentiating between bad trades and normal losses is challenging and subjective.
Backtest to Manage Expectations
- Use backtesting to understand your trading rules and remove randomness.
- This helps you emotionally prepare for potential drawdowns and calibrate your system.
eSports Settings as Backtesting
- In eSports, players obsess over settings like a form of backtesting.
- This mirrors trading where players analyze win-loss percentages to optimize performance.