It was Closing time in the Markets of April 5th 2016. This was my first time in my Trading career to experience a 7 Digit Loss in a Day. Lucky me right?
"How do you feel? Are you okay?"
I'm fine. It's weird I know. I should be feeling something. Pain. Depression. Sadness. But none of these emotions are present.
"Eh ganyan ka naman talaga noong simula pa! Manhid!"
*Plays Pusong Bato In Background*
It wasn't always like this. And like everyone else who learned this craft, I also had my fair share of emotions - Happily jumping off my chair when I see huge gains in my port from super stocks. Then cry and sleep in heartache after a few trading days, as those gains get eaten up by a series of losses. Believe me, It's normal.
Learning is a process. It takes time. And the stock market isn't something easily mastered. Don't believe people in social media who tell you trading is easy money, people who tell you all the good things about the markets without disclosing the risks. And especially people who don't talk about managing losses and emotions.
These people who seem to be always right about everything and give you this illusion that everyone is profiting from the market but you, is a lie. Because no one is immune from the Markets.
I look at the Stock Market as a game - the gains and losses in my account are just numbers. There are good days and there are bad days. Today was a bad day.
And that's all there is to it. Moping around and giving in to negativity wouldn't help bring back what I've lost now would it? This experience just means I need to refine my system so this kind of damage would less likely to occur in the future.
It's simple discipline of the trade.
So how do I manage to kill my emotions in Trading aside from re aligning my perspective?
"Study and Practice."
Here's a link that could emphasize on that.
In ZFT, we have a ritual called "The Purge" where we rid ourselves of all noise that could affect our trading decisions. This noise could be in the form of trading buddies, stock groups, gurus, subscriptions, disclosures, news, rumors, etc.. The process helps us re align our focus and better ourselves. If you are having trouble with noise, Try purging.
Many people fail fast in trading because of ignorance or lack of a better system. Selling plays a bigger part in trading than buying. And cutting losses is the first system every aspiring trader should master.
For everyone can buy with confidence.
But only few can sell with dignity.