On Monday, October 19, 1987, the Dow Jones Industrial Average fell more than 500 points. As markets in Europe, Asia, and the United States began to plummet, some traders, such as Paul Tudor Jones, were able to take advantage of the slump, and others, such as Richard Dennis, lost everything.
Based on topics related to trading psychology, scientific research, and the experiences of the world’s largest traders, 3 tips are provided to overcome consecutive defeats:
📍 Become a stubborn trader: When your decisions lead to consecutive failures, you may doubt your skills, knowledge, and abilities as a trader. But the secret to overcoming a financial failure is your mental endurance, not the knowledge base you have. According to Dr. Carol Dweck, Professor of Psychology at Stanford University, the most resilient students, athletes and entrepreneurs, have a mindset based on growth and development. When faced with new challenges, they decide to work harder, learn new skills, and strengthen their current abilities. They also use failure as an opportunity to grow.
📍 Change your approach to trading: Obviously, just having a winning mentality is not enough. When you are suffering from a series of financial failures, you may need to change your trading strategy.
📍 Pull yourself aside: When emotions overwhelm you, you may no longer be able to react to the losses with the same strength and resilience you once had. Sometimes the best thing you can do is give up your emotional attachment to the deal.