Just to recap, in the last two episodes of the Tame Your Trade Monster series, we discussed what a Trade Monster is and how to recognize its symptoms. Today, we’re discussing what causes your trading monster to be triggered, and ultimately rear its ugly head.
It can be triggered by many different things…
- Life changes
- Family issues
- Market crashes
Something as simple as a cold can cause fatigue which in turn clouds your judgment. But, it’s a compounding effect.
For example, one time my biggest loss in trading occurred because I put too many trades on the week I was moving across the country, and into my new house. I packed up my trading computer and 3-year-old and flew from Seattle to Austin, where I didn’t have an internet setup yet (or furniture).
I was trading from a blowup couch on a laptop after ripping out the carpet on a concrete floor. I should’ve known better — and kept my trading volume light, but I just love trading so much. I didn’t want to go flat — even though I knew I should’ve. The stress, lack of trading setup, and focus (and childcare!) along with home remodels, put my Trade Monster into overdrive. It took over before I could realize it, and I ended up losing thousands of dollars during that three-week timeframe.
I should’ve known then, what I know now — which is that my trade monster was stealing my focus. I was so eager to keep trading (because, after all — I love trading!) that I didn’t have enough discipline to take a break from the market. I should’ve seen the symptoms that my Trade Monster was taking over – –stepped back, and held onto my money. But before I realized what was happening, it was too late. The money was gone, and the spiral was beginning, as my Trade Monster took over even further. This left me feeling discouraged, hopeless, and like a baseball player that struck out too many times in a row.
Once you get to that place, it’s even harder to tame your Monster, because it’s taken even more control (cue an evil laugh, bwhaha). I should’ve known it was a time to step back and tame my Trade Monster.
I tell you this story because I’m sure you have one (or many) of your own. But, the good news is recognizing your Trade Monster, and knowing how to tame it, are the first steps to success.
And believe me, you absolutely can do it. You just have to learn how.
Drop a comment below. I want to hear your story. When should you have tamed your Trade Monster, but didn’t realize until it took over? Come back next week to see how I tame mine. We’re going to talk about strategies for identifying and taming your personal Trade Monster.