Turn your Wounds into Wisdom

Forget what hurt you in the past

Trading is a continuous learning experience, but this is only true if you maintain a Positive Learning Attitude. This statement is applicable to any trader, as traders are only human being who are subjected to human pitfalls. This is true even for me.

Yes, September was a challenging month as I was moving from one continent to another. My initial Excuse for the drowdown month (after a streak of profitable months) was my change of environment. Yet, after reviewing my Trading Journal, I realised that my Psychology was the root cause.

Turning Results into Learning Outcomes

As Oprah Winfrey puts it, “Turn your wounds into wisdom.” This is crucial for every trader when they meet with challenges and road bumps.  As mentioned in my article “Don’t let the Frustration Bug Bite“, many traders get frustrated and would blame any thing but themselves.

If you’ve done your Trading Journal and routine reviews, it is very certain that you’ll have a Lesson to take away irrespective of the results. Examples include:

  • Positive results due to good analysis and execution
    • Lesson: Such trades to be repeated
  • Negative results but had good analysis and execution
    • Lesson: Unlucky but great execution
  • Positive results but bad analysis and execution
    • Lesson: Danger as potential for bad habit
  • Negative results due to bad analysis and execution
    • Lesson: Never to repeat such trades

REMINDER – This applies not just for Negative results, it is equally important to review your trades when you have Positive trading results.

Keep the main thing the Main Thing

Although trading is about making money, the main focus should Not be about the amount of money gained.

Instead, Continuous Profitability is about focusing on Consistently Trading your Edge

And to achieve that, you need to make every effort to execute your Edge perfectly. Those effort includes monitoring your Trade Journal and constantly Turning Results into Learning Outcomes.

 

Thank you for reading and Happy Trading!!

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