Rolling the dice image showing desperation and doubline down.

Doubling Down in Desperation

Here is a list of reactions to a losing position.

Before you read them, I want you to do a quick check of your physiology, emotions, and thoughts. And as you read these, notice any changes as you recognize any of these behaviors for yourself. Do you see any changes in your breathing or muscle tension? Do you notice any emotions that arise from any of these reactions? What thoughts go through your head upon recognizing any of these statements?

  • I got in just a little early.
  • They took out the last three of my stops and then the market reversed.
  • We are now at even a stronger support/resistance
  • The market is manipulated
  • They are just running stops
  • This is even a better entry right here.
  • They are not going to f*** me again
  • I can’t afford to lose one more trade
  • I can add to my position and improve my average cost
  • I need to make $500 a day
  • I hate losing so I’m doubling up
  • I’m smarter than they are and they aren’t going to take me out
  • Don’t you see what they’re doing right here?
  • This market is way overbought/oversold
  • If my entry price was good, then this is even better!

As you read these reactions to an open position that has a negative P&L, what did you notice?

  • What physiological changes occurred?
  • What emotions or feelings did you notice?
  • What thoughts went through your head with recognizing these reactions?

Please take a moment, to be honest with yourself. I’ll wait while you do this. 😉

Next, what do all these reactions have in common? One commonality that I notice is they all trader-centric. They’re all about the trader, the trader’s needs, and the trader’s beliefs. They aren’t about the market itself. Whenever a trader gives him or herself one of these or any other reasons to trade outside of their system, the meta-message, or the belief that drives these excuses, can be one of the following:

  • My feelings are more important than my P&L
  • My dream is threatened if I lose again
  • I’m smarter than the market
  • I have to do something
  • I am my reactions

Imagine for a moment what it would feel like to step into a Master Trader mindset. A Master Trader feels good when they are in the flow of the market without any pressure to perform. A Master Trader knows that their dream isn’t threatened and is able to stay in rapport with the market as it is. A Master Trader doesn’t need to outsmart the market to prove something to himself or others. A Master Trader doesn’t have to do anything. And finally, a Master Trader knows that he or she is not their reaction, but a higher self that is in rapport with the markets.

A Master Trader is able to step into a higher self that creates a sustainable trading context.

Mind Muscles Academy is designed to support you and your Master Trader mindset. At the Mind Muscles Academy, we believe that dealing with just symptoms, creates a perpetual struggle for the trader. Our courses, groups, and private coaching are focused on creating a path to your own Master Trader mindset.

Do you prefer to struggle with the symptoms? Or…do you have the courage to deal with the cause?

About the Author Rich Friesen

A veteran broker and floor trader, Rich went from the "worst trainee trader ever", to building one of the most consistently profitable options trading firms on the Pacific Exchange by training his traders using neuroscience. Rich also holds a Masters Degree in Clinical Psychology, a B.A. in Philosophy, and is a graduate of the Gestalt Institute in San Francisco along with Master’s training in Neuro Linguistic Programming (NLP).

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