February 24, 2023
Hey—Yvan here!
At Trading Composure, our goal is to help you become a more consistent trader, and opting to receive this newsletter is a great step in that direction. 
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Quote Of The Week

If you personalize losses, you can’t trade.

This quote is attributed to famous hedge fund manager Bruce Kovner. The basic idea is that losses are a reality of the market; and arguably, they're also an important part of it since they provide valuable information and opportunities for growth and learning. Hence, if you become too attached emotionally to your trades and can't accept the idea of taking losses, it will be very hard for you to stay objective and make rational decisions in the market.



Staying Sane When Taking Your Ls

As a trader, you will often find yourself getting emotionally attached to your trades. I’ve been in the market for 17+ years, and still to this day, I find myself getting frustrated when things don’t go my way. 
A loss, and even a few of them in a row, doesn’t immediately bother me. I know my trading system and what to expect broadly from the market, from a probabilistic point of view. 
But my psychological threshold around losses seems to be around 8-10 losses in a row. When that happens, I can sense my mind bubble up and my body tense up—even though I know that a profitable trade is just around the corner.
If you see yourself getting caught up in an emotional knot like that, first let the awareness function of your mind notice the “getting caught up” and also the story that’s causing the emotions. It’s playing out in your head, and causing anxiety or dissatisfaction. Just note the thinking, and observe it. Don’t judge it, just observe it objectively and let it evolve and do it’s thing.
Also let awareness notice the physical feelings of the thoughts and emotions that are coming up.
This can be difficult if you don’t have a consistent meditation practice it much, that’s why I insist that you pick one up—10-20 minutes a day is enough. You will notice a difference.
But even if you don’t have a consistent meditation practice, try to stay with the emotion in your body, and notice how it all feels. Try. The longer you stay, the better. Maybe find a feeling of friendliness towards your feelings, instead of wishing they weren’t there. Find curiosity about them in the moment.
And perhaps more importantly, redirect your attention to your proven process. Stick with it. The numbers will eventually work themselves out. Trust the process.

Hope you enjoyed this preview of the Trading Composure Newsletter.

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