Today we’re going to cover this topic: Anger versus Sadness for Trading.
The reason we’re talking about an emotional topic here it’s all about the inner game. And the inner game refers to the inner part of your trading.
We’re doing this because I have a book coming out Mindsets of a Master Stock Trader, which focuses on a lot about the inner mindsets the inner concepts of the psychology. It’s all about dealing with your emotions about trading properly with the right mindset in place.
Emotional Trading – Anger Vs. Sadness
I want to chat about the two primary emotions that we talked about, and that is the fear and greed. I think these are covered quite extensively when it comes to stock trading in news articles and press.
The thing with fear and greed is when you fear, you’re selling things off, and when you’re greedy, you’re buying things. This looks at the market direction – selling off versus buying. It looks at your actions. But not a lot of people talk about other emotions.
In our case, we’re going to talk about anger, and we’ll talk about sadness. I think it’s essential to cover and understand these things. When you look at psychology, you typically look to draw the emotional part. Or you usually try to draw or put a visual aspect to understanding how emotions behave.
Take a Closer look at Anger in Trading
If you get only one thing from this post – this is the concept you want to remember.
What anger does is it pushes back. It pushes away everything that comes in contact with it. It’s a defensive mechanism, but what it does is it pushes things away.
If you have a spouse that you’re angry with or you guys are in a fight, you push back. If you lose on a stock trade, you push back. You don’t want to trade Microsoft. If you lose on your strategy, in your head, this strategy sucks. All of it pushes back.
Take a Closer look at Sadness in Trading
Sadness is different. It works in a unique way.
In fact, sadness brings things into you. Most people think about sadness, something like this. I’m crying, I’m upset, or you might have doubt that starts to creep in. And all these emotions start coming into you. But this opens you up in a way. That’s because it allows you to get in.
All these have openings and holes. And that’s a big difference. Most people, when they start trading stocks, and they have their first big loss, the first thought is anger. I’m angry – so that’s the first step.
You’re pushing back. You think that stock sucks. You don’t like losing money. You have to fight and get your money back. You’re angry; you’re pushing back. But the second stage is sadness. You’re sad, and you’re upset.
Key Takeaway: When you’re angry, it doesn’t allow you to move forward. That’s the big difference between these two things. With anger, you can’t move forward. You’re not moving, and you’re not progressing. Whereas sadness, you get a chance to move forward.
You get a chance to get some new things into you. Not only that, you get to cry, you get the sadness, the doubt, you’re upset, but you also get new knowledge.
Maybe this new strategy could work. It could be a new money management style. It could be a concept. But all these things start changing you to be able to move forward and progress.
When you’re angry, you don’t want to work on your relationship. I don’t. I’m mad. She’s wrong. I’m right, and she’s wrong.
It’s the same thing with trading. I was right. That stock didn’t move the right way. When you’re angry, you’re pushing back. You’re pushing everything outside of what is. When you’re sad, you’re opening things up. Not only are you open for the hurt, the vulnerable part (which most people don’t like), but it allows you to move forward. It allows you to progress.
And that’s how you improve, and that’s how you get better as a trader.
We are centering and focusing our attention on the inner game of trading.
You can check out the new book Mindsets of a Master Stock Trader and learn more about the emotional part in trading. And that way, you will become profitable and evolve the trader inside of you.