How do you come back from blowing up a trading account? Have you lost so much money in an account that you can no longer trade from that account? It can be very mentally and financially challenging for some people…
Many professional traders consider blowing up a trading account a rite of passage. It is a lesson that many of us need to experience before we can fully appreciate the importance of proper risk control in our trading. Blowing up a trading account is simply one of the many temporary setbacks that tend to occur on the path to becoming an extremely successful trader…for some people. For other people, blowing up a trading account has the opposite effect. It is the end. It crushes them emotionally to the point where they can no longer trade at all.
Realize that two people can go through the same setback and have very different thoughts and experiences about that event.
What is the difference between the person who blows the account and falls into the downward spiral of doom who ends up never trading again…and the person who utilizes that event to propel themselves to becoming a better trader?
The only difference between the two people that experienced the same setback and then go on to experience very different future results is the way they think about that event.
The person’s thoughts about the setback are the key. The way you feel about the fact that you have less money is completely dependent on the thoughts you choose to give attention to revolving around that fact. You have the power to choose those thoughts! Take a few minutes to listen to this podcast to learn some new ideas or perspectives about how a person’s thoughts can radically change their future.
John Locke is the host of the Trading Performance Podcast and the founder of Locke In Your Success, LLC which provides education on trading strategies and performance. John welcomes your questions at firstname.lastname@example.org.