I am procrastinating at the moment,
couldn’t write anything for the technical report I’m supposed to finish in
three days. I decided to write this hoping that other people will somehow
benefit and take something from my experience.
This
was my port three weeks ago:
A red port and stressful work is never a
good combination. Most will ask how I ended up so deep in shit. My mentors would
disavow me for it seems like I never learned a thing.
Having the time to reflect I’ve divided
this post into stages.
Stage 1 –
Denial
One critical
factor is the denial stage. The refusal to accept you made a mistake will
inevitably result to not wanting to cut your losses quickly. I reverted back to
what I was before the ZF program. When you are so deep in shit, you just ---
you just can’t get out of it.
Classic “ipit”
situation.
I relied on hope
again instead of thinking straight and use what I learned. This is like
you being Pandora, holding a box with nothing but hope in it. The period that
one is still hoping that things will turnaround eventually is what denial is
all about.
You cannot blame
me – after all to hope is human for man is an animal with a sense of the
future, a being in quest of reality. Threatened by fear and encouraged by hope,
as he reaches beyond himself for that which is yet to come.
Let me stop you
right there as you might get the wrong idea, hoping maybe in human’s nature but
the same way you wouldn’t mix Mentos® mints with a bottle full of Coca-Cola®
you DON’T mix hope and trading in one sentence. (which I just did
but pay no attention to that). They just won’t go well together.
Stage 2 – Seeking
Guidance Comfort
In this
instance, I felt so hopeless and so frustrated that I wanted to quit trading
there and then. I needed to talk to someone. I looked for some guidance. From
someone who wouldn’t say “kaya mo yan” or “makakabawi ka din” or
“maliit lang yang loss na yan”.
Celeste in this
post (https://rootingforceleste.com/2016/04/26/scribe-chronicles-ism/)
took the words out of my mouth:
“The resonance of comfort only echoes when the voice knows what it says. It will only reach the pit if it understood the depth of the distress in the first place.”
“The resonance of comfort only echoes when the voice knows what it says. It will only reach the pit if it understood the depth of the distress in the first place.”
ZF didn’t even attempt to stop me. BUT…
Kap on the other hand said this:
Did you notice what both of them said? Aside
from both didn’t say “makakabawi ka din”.
Study and invest more time.
Review that trade.
Reflect and learn from it.
No, I wasn’t looking for those phrases
either. In reality, I was just looking for comfort.
So I ate ice cream. I walked the dogs. I
took in the form of an Awoken and killed some Vex and Fallen in Venus in some
form of release of my frustrations.
Having a routine to de-stress is
imperative.
Stage 3 - Acceptance
Everyone knows
the tribe has strict cut loss limits. There are rules. The mentors never failed
to remind us, as they both kept on reiterating the same phrases: follow
rules and exercise discipline.
I know for a
fact that I did not follow the rules and that I lacked discipline on these
trades. If I did, why the hell am I writing this piece?
So I have now
accepted that I made a mistake. It was on me. Not on the mentors, not on the
system.
It still took me approximately two weeks to
finally cut all those losses. It was the Purge all over again.
By this time, these phrases in Stage 3 (Study
and invest more time. Review that trade. Reflect and learn from it.) make more
sense now.
So nope, I didn’t raise the white flag. The fight goes on as they say.
Stage 4 – Aftermath
I was supposed to lay low for a bit and
take a breather from the market after those successive bad trades. But I am as
stubborn as a mule so I still traded and dug myself deeper and deeper. I won
some trades but I incurred bigger losses.
It is important to take a step back every
now and then. It gives you a wider perspective on things around you.
I guess for some divine intervention my day
job forced me to go into a sabbatical leave from the market. Mind you, it was
hard when the village runs on solar power and someone forgot to buy petrol for
the generator. Nonetheless I managed, I had time to reflect and revisit my
trades.
After such reflection one thing is clear I
need to control my emotions. One very easy thing to say yet so difficult to do.
Tame
your emotions or it may be the cause of your downfall.
Epilogue
Today 18th of May, after almost
a month of incurring losses, Ms. Market seemed to be in a good mood and
welcomed me back with arms wide open. I just wish it was really an all-in.
Emotion check: My smile is still from ear
to ear BUT not overflowing with joy.
I still need to work on my emotions and so
should you.
One step at a time. We’ll eventually get
there.
- Arthur Pendragon
(Eques ZFT Batch VII)
(Eques ZFT Batch VII)
I can relate to this. Phew.
ReplyDeleteHi ZF,
ReplyDeleteAs usual, the best thing about you is not just on the winning side but on the losing side as well!
That's reality of the market whether you are an investor or a trader, no matter what systems you have - he/she is in control not us! - everything will be taken when at the wrong side but definitely will give more at the right side of him/her.
With that, Arthur Pendragon must yield the Spartan Warriors like Traders to win profitable battles for themselves when ready to face the one and only - MARKET.
Good share indeed!
Regards
So true... im a newbie and losses just really get me down. thank you for the post. i haven't been trading on what I learned the past week. i need to learn from my mistakes, study more and plan my trade. And of course, trade my plan.
ReplyDeleteI can also relate to this. For 1 year since I start tracking again, I was down a bit hefty. -57% port down to be exact. I was also on the verge of quitting as well because for so long I noticed I have never been improving. Confidence down, working on night shift, stress.
ReplyDeleteI took a break... had my Japan trip with a friend for one week, but still checking from time to time about stocks. While there, a good friend of mine called my attention and told me to buy this stock. I saw the OHLC, and I guess it's ok to enter while there. That was the start of my reversal, and gain of confidence. Big gains, small losses, we'll take it.
Now, I'm back to break even. Still doing some mistakes, but I guess, having great friends/traders pushing you up to continue contributed to improving my portfolio. Never give up should be your motto when doing this art passionately.
PS: The Japan trip was done last month. :)
DeleteGood luck sa journey mo, Arthur. Once na master mo na ang emotion sa cutting losses, get ready to tame your emo on opportunity loss. :)
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeletei love you zeefreaks. mahal na mahal kita. promis pakiss isa lang
ReplyDeleteBoss Z, thanks sa pagshare.... nakakarelate..hehe-warflip
ReplyDeleteKing Arthur kaya mo yan..ikaw pa.
ReplyDeleteArthur Pendragon from Seven Deadly Sins. Nice read though
ReplyDelete