Trading Educators Blog
Disappointment and Regret
Every trader makes bad trades and faces regret, it is inevitable. And we all have the human tendency to be overtaken by emotions. When we screw up we have a feeling of loss, and even a sense of denial. We wish we could undo the mistake.
Going through such a thought process is understandable. It is what you do about it that matters.
Virtually from the time we were born we learn to use our emotions to protect ourselves. When we take unnecessary risk our inner-self warns us, "Be careful! Possible harm may be ahead."
Sadly, when it comes to trading, these emotions often turn out to be more of a liability than an asset. Successful traders learn to keep emotions under control. Emotionally driven trading decisions lead to trading losses. It's imperative that you do whatever you can to prevent your emotions from interfering with your ability to trade calmly and purposefully.
Disappointment and regret are two emotions that interfere with good trading. We feel disappointment when our trades lose. We feel regret when we think we have made a poor decision that might have been avoided.
We cannot allow ourselves to think that traders are not allowed to make bad decisions. We also cannot regret losses. Bad trades and losses are a part of this business. All businesses are subject to making wrong decisions and the subsequent disappointment and regret that follows such decisions. The correct thing to do is learn from the mistake and then go forward with the next trade, doing it as logically and in as controlled a way as we are able.