Sadly, I know traders who have ended up with serious depression.

Not because they couldn’t be profitable – quite the opposite.

Because even after years of successful trading, they were still taking losing streaks too personally.

They allowed losing trades to affect their lives. On winning days they felt happy and alive. But on losing days, they felt depressed. Miserable. Unconfident. And they even closed down to people around them.

And to some of them, it cost them their marriage too.

I have to admit, 10 years ago, I used to be the same.

My well-being used to be highly correlated with my success in the markets.

So, my mood was swinging more than Crude Oil during recent months.

And it felt horrible. I felt emotionally unstable and confused.

Fortunately, I hated these states of mood so much, that I started meditating. And it got me out of all the possible troubles. Since then, I’ve been meditating for 10 years, sometimes even up to 2 hours a day.

In fact, meditation completely changed my life. I became happier no matter what. I became much more creative. Positive. Optimistic.

And I am pretty resistant to the pain of losing trades now as well.

There are many meditations out there. Many different ways to do that.

But today, I’d like to share with you a very simple one.

It is just 6 simple steps:

1. Close your eyes.
2. Imagine some very painful loss. Ideally, bring up some from the past. Or you can make it up – that’s ok too. But bring up the pain of it. And feel it. Truly. Authentically.
3. Now imagine you just had 10 losing, painful trades like that in a row.
4. Feel the pain even more. Do not worry. Do not push it away. But do not engage into the pain either. Meaning, do not react to it in any way. Let it be exactly as it is.
5. Now – the most important step: Observe it. And do not react to it. Just be a completely detached observer of that pain. Be aware of it, watch it, but do not engage with it. Again: Let it be exactly as it is.
6. Then tell yourself “I accept that pain and I am allowing to let it go”. And then “release” it and watch how it starts getting softer and softer.

That’s all.

It’s a very simple, yet very powerful exercise. If you repeat it once a day for at least 14 days, this is what’s going to happen:

  • The hidden blocks and suppressed pain from previous loses will be unleashed.
  • They will be re-experienced, but only for a few seconds (that’s ok, allow the pain).
  • And then all the emotions will start becoming really soft until they disappear. So, after some practice, you’ll be able to bring up your most painful losing streak from your memory and feel completely calm and relaxed about it.
  • That’s because all the blocks and suppressed emotions are gone. And this will reflect hugely on your next losing streak. You will experience a big improvement. A huge difference in your state of being – no matter what is happening in the markets.

Remember: Psychology is an important part of trading.

We traders have to work on ourselves constantly. Including the psychological aspect of trading.

We need to be bulletproof warriors, to keep conquering markets again and again.

So, I hope this helps you.

It’s been working magic for me.


Of course, there are also other proven and fast ways to reduce the pain of loses: Simply reduce the losing trades and drawdowns too. You can do it quickly and easily with Market Internals techniques or with Smashing false breakouts. If meditation isn’t your thing, perhaps this will be more suitable for you! :-)


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DISCLAIMER: Trading involves significant risk of loss and is not suitable for everyone. People can and do lose money. Hypothetical results have many inherent limitations. Past performance is not necessarily indicative of future results.

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