Understanding trading on tilt and how to combat it effectively

You know the drill...

Efforts to 'be more disciplined' or 'stick to your rules' don't magically manifest into a steely resolve to maintain composure when trading. Correct?

Truth is

A single instance of trading on tilt can undo weeks of diligent work. Worse still - it can spiral you into massive account blowouts. Sound familiar? 

So what exactly is happening? Tell you in a minute.

First

Imagine you're running late for a crucial meeting. While you might have the chance to catch up on time, you don't risk running every red light on your way. Similarly, when your toast doesn't 'pop up,' you don't grab a knife to free it while the toaster is still plugged in. Right?

Why is that?
Because of your immediate heightened awareness of danger.

Consider this

When asked to explain how he had such a big percentage of winning trades, market wizard Mark Weinstein replied:

"Because I have a real fear of markets... which has forced me to hone my timing with great precision... I also don't lose much on my trades because I wait for the exact moment."

But that fear didn't develop out of thin air...

You see

Frequently it requires a metaphorical 'car crash' experience to genuinely comprehend the perils inherent in trading. Sound familiar?

Good news

Grasping the risks associated with a situation provides the tools to avert self-inflicted harm.

But...
Most people fail to fully grasp the peril lurking within trading.

Want proof?

• Placed a trade without developing a game plan (preparation that has edge)?

• Placed a trade in the absence of a playbook of strategies with proven positive expectancy?

• Place a trade based on a hunch or feeling?

• Placed a trade that lacks a unique idea the competition isn't aware of?

• Added to losers?

• Waited for 'return to breakeven'? 

So what's the solution? Tell you in a second.

First? 

Imagine you're about to set out on a drive in your car.  

Each time you hear that distinctive click as the seatbelt locks into place, your mind registers it as a signal you're prepared for the journey ahead. Agree? 

But what happens if you don't first buckle your seatbelt? It triggers a disconcerting sensation. Correct?

Your subconscious mind, which has grown accustomed to the routine, suddenly notices the absence of the expected action. It's like a small but persistent alarm bell ringing in the back of your mind, reminding you that something essential is missing.

It's such an uncomfortable feeling - you're compelled to buckle up. Agree? 

Guess what?

By working with a qualified mentor or trading within a professional firm, you commit to crafting a daily game plan that involves meticulous preparation with a strategic advantage. 

You also commit to executing prescribed playbook trades—strategies already rigorously tested.

Through this approach you establish familiarity. The notion of straying away is too distressing and unsettling. Make sense? 

In summary

Often it takes painful losses to heighten your awareness of the dangers in trading. Only then do you truly understand the main goal of what's called 'your trading process'—to protect you. Making money becomes a secondary aim.

Honouring this principle is a cornerstone of sustained trading success. The outlined 'process' is, of course, partially encapsulated in the previously mentioned bullet points.

If you're serious about trading - first to protect yourself - and second to see success - investing in the necessary resources is available to you.