How to Recover from Trading Tilt

📈 TRADING PSYCHOLOGY

How to Recover from Trading Tilt

In poker, "tilt" is a term that describes a state of mental or emotional confusion or frustration that causes a player to make poor decisions and not play their best game. It can lead to a loss of control over the game, higher cognitive distortion, and loss of money. 🎲🃏

In trading, tilt can occur in an instant. You hit the buy button instead of sell, and the market moves violently against you so fast, in fact, that you lose all of the day’s profits in a matter of 5 seconds. 📉⚡️

Rage and fury kick in, and before you know it, you are reversing and double reversing, trying to...

**Get.

The.

Money.

Back.** 😤💸

Almost every trader will go on tilt at least once in their journey, so here are some tips to climb back from the abyss. ⛑️

Forgive Yourself. 

Yes, this was idiotic beyond belief. Yes, you totally lost control over yourself and the account. Yes, you should have just stopped and walked away from the desk. But unless you forgive yourself for the errors, you will never be able to forget them and move on. 🙏✨

Be Willing to Lose More. 

This may sound counterintuitive but is actually a key part of recovering your capital. In highly volatile markets, you need to expand your stops by 3X, sometimes 5X your normal size, in order to have any chance of making positive trades. Once you adjust your stops for volatility, you can stay with trades long enough for your thesis to play out. 📈📊

Use Accuracy, Not Size, to Make it Back. 

There is a massive temptation to increase your trading size in order to make the money back sooner. Whatever you do, do. Not. Do. That. Focus on making accurate trades, not large ones. 🎯🧠

Have a Realistic Timeline for Recovery. 

It takes a year to build a high rise in New York. It only takes a few minutes to bring it down. Trading is not as drastic as that, but if you have a big loss, it may take you two, three, four weeks to chip away at getting it back. Stay patient. Stay focused. And you WILL recover from tilt. 🕰️💪reduce psychological stress. 🌟