Loss in trading is not a failure
By: Gaurav Taneja, Financial Trainer, Venteskraft May 21, 2020
If you ever go in any challenging career line, you require to have a “thick skin”. You must have heard people saying, ” This guy has a thick skin, he/she is not affected by most challenges easily.” Same applies to trading as well. One must be completely open to criticism, so that it changes one’s approach to trading before more losses pileup. And it is very important to look at losses as constructive feedback rather than personal failure. And if you are starting trading in the stock market as a beginner then you are bound to make loss in trading. It is a part of the learning process, provided you don’t make it a habit.
If you haven’t had a perspective like that, it is time for you to develop now. The way people look at criticism develops at a very early age. Most psychoanalysts suggest that, one’s way of dealing with criticism is greatly influenced by how children learn to handle the challenges they encounter when they enter school. Children develop either a sense of mastery or inferiority. And on growing up, some are especially vulnerable to criticism and others simply welcome it.
Some people are very prone to breaking down on an encounter with criticism. Throughout their lives, they find ways to protect themselves from punishment and feelings of hurt. They are always on a lookout of what is right or wrong, and they try to avoid what is wrong at all costs. Forgetting that a little hurt to the ego can provide them immense learning.
If you are a person who faces trouble in viewing criticism as nothing more than a constructive feedback, then you need to change you perspective. Remind yourself that no one is looking over your shoulders. No one is keeping an eye on what you are doing. You have no obligations to feel free in doing whatever you like to do. The better suggestion to you would be to start looking at trading as objective and unemotionally, just like you look at your daily activities, such as driving a car. When you drive a car you don’t worry about how you take a turn. If you take a similar approach you will be well poised when trading.
If you have missed the previous blogs of the “Market Psychology” series, you can start reading it from here.