You’ve reached the last of my Trade monster series! In case you missed the first few, we’ve covered how to define a Trade Monster, recognize its symptoms, and its triggers. You can view the first part of the series on my homepage.
In the last part of this series, I’ll be talking about overcoming and taming your Trade Monster.
So let’s dive in…
What was my Trade Monster telling me?
My trading monster hit me hard this year, and in order for me to regain control, I’ve had to take some pretty large steps. Many of you know, the first order of business was deciding to take a sabbatical. My timeline was pushing me to take off a few weeks. But just because that’s what mine was telling me, doesn’t mean that’s what’s right for you. Luckily, there are many ways to tame Trade Monsters.
Other Ways to Tame Your Monster:
- Create a new rule-based trading plan that you can get excited about
- Take a real vacation
- Read books that have nothing to do with the markets
- Watch a movie or start a new TV series
- Take an extended lunch break
- Literally anything that can get your mind off trading!
How has it been going flat?
As predicted, the market’s trudging on without me! Things are still ticking, time’s still passing, and neither the market nor me is hurting from my hiatus. I know this is silly to say (or read) out loud, but I think the notion here is important: the market will always be there, and there will always be another trade. Take that extended lunch break or vacation, and come back refreshed. Your trading will thank you for it.
For now, I’m just happy watching the market from afar.
Let me know in the comments how you decompress, I’m still looking for ways to spend my last few weeks!
Hi Danielle,
I’m enjoying your series about Taming the Trademonster…it’s a great verbal reference for talking about that part of trading that encompasses “the lifestyle”. Whenever I get asked about trading. (usually when I’m blabbing about trading) I always say, that the hardest part is dealing with the emotions that trading will run you through. People sort of see that, but it gets more real when you’re going through it. My trade monster started directing my thinking two days ago….I was in a trade that was doing really well and when it started to pull back, I looked at previous pullbacks in time and rationalized that it would be a few days dip and then away we go…I let my guard down and forgot that this marketplace right now is highly speculative and is not under the same patterns from day to day. So I didn”t bank my profits, kept holding on…and now I’m sitting though the slop, believing someone other than me wants to own this stock again….soon(ish) . I need to find a way to get my Trademonster to recognize the “tops” and be glad for the win, instead of getting caught emotionally with how much “more” I can get.
Once I started reviewing what I saw and the choices I made, I recalled JC talking about his big TSLA trade and the emotions it took him through, but one strategy that helped was to sell off some of the position along the way so that those profits are stored, while you watch if it’s continuing. I didn’t think to do that until…well… next time. Do you find that every lesson we hear about still ends up a personal learning experience before the knowledge starts to sink in?
Hey Danielle, EXCELLENT articles on the trade monster.
Especially this last one. And the lessons we learn, to the leveling up one must do.
Here’s my strategy is:
1- Admit it. Without admitting that the trade monster has taken over my trading, I think I am invincible. HUGE egotistical shot but the realization that this blindspot exists and is beating my profits, helps me calm down.
2- Continue to adhere to my daily routine. My daily routine now is ORGANIZATION by meditating and waking up at 5am. When I miss this routine, I feel it in my trading goal and constant emotional distraction.
3- Take a reading / learning vacation. To get to the next level in my trading, especially when I’ve passed like my first 10k, or 100k profit… I need to level up, and keep feeding my mind good stuff. I love reading non-fiction, especially in area of health, medicine, anthropology and history. (I overcame obesity and MS so that’s why my interest).
*Bonus- What I’d ideally like is to have a Mastermind trading Partner to chat weekly, and call me out on my ideas and mistakes, while we both take positions independently. (Sort of like how Richard Dennis had Bill Eckhardt).
Mind you, I’m not new to trading and started over 20 years ago, trading off 144A insider sales reports and then upgraded to reading charts. So although I’m experienced, I find the trade monster or the markets doesn’t care who I am or where I came from… only that it raises its head to defy me right when I stop being consistent with myself – mentally and physically.
So, thank you for the reminder and thank you for bringing to light the trade monster.
And may HUGE swing profits befall upon you from the trading gods!
Best regards,
Jonathan
Karen, what you have said is part of what makes it the easiest hardest thing to do! The lessons are endless all we can do as traders is to do what you are doing, learning from the experiences along the way.
Having a Trading Plan is the most essential tool in the box, and to always be grateful for profit no matter how small. I have entered trades, often with no idea or expectation, while some have been amazing, the ones that I have applied a specific set of rules to have been the Account Makers rater than the account breakers, all the best.
Danielle can not wait to hear your Voice and to catch you up in a class soon, enjoy the break we will all be here upon your return.