In this episode of Truth About FX, Walter digs into some key tips on how you can medicate the negative impact of losing a trade and focusing your psychology into rising up from the fall. According to him, there are these easy ways that are free and available for everyone — if yo know where to look at. And what is this “tapping stuff” that Adam talked about at the conference that could help you feel better instantly?
Download (Duration: 05:15 / 12.6 MB)
In This Episode:
00:42 – tapping EFT points
02:21 – short brisk walk
04:11 – 3 simple things
Announcer: Sometimes, forex trading is a wild and wooly place to be. That’s why Hugh is here, to post your questions to Walter, the naked forex guy. Hugh’s got questions and Walter’s got the answers. Here at the Truth About FX Podcast.
Hugh: Hi, Walter. Is there anything that I can do to immediately medicate the negative psychological impact of a losing trade?
Walter: Well, Hugh, I think you were at the Conference in London. Do you remember what Adam was talking about?
Hugh: Yeah. He’s talking about tapping EFT.
Walter: Yeah. That’s one thing you can do. That would be one thing that I would probably want to do. The other thing that you can probably do is you could talk about, put the focus on the execution.
So you can talk about what just happened, you can write it out. You’ll write out in your journal, “I saw this trade opportunity. I took it. This was the result. Why did I do it? Because I saw a signal. Did I take the right signal? Yes. Did I get out at the right time? Do I have the right exit? Yes. Did I do anything wrong? No. What was the result? I lost money. Is there anything I could have done about this? No.”
You’re kind of letting this go. If you want to make yourself feel better, that’s what you’re really after, I would look into the EFT. The tapping stuff that Adam talked about at our Conference.
Just Google EFT + Trading or tapping + trading and you’ll get lots of stuff there. That’s kind of an immediate hit that you can do. Another thing you could do like if you’re getting down and you’re upset, first of all, are you trading the right amount for you?
Are you trading too much? Are you taking on much risk? Because that’s one part of it. The other thing that you can do is and I learned this from one of my Professors. He studied mood and what he found was the best way for you to put yourself in a good mood, any ideas?
Hugh: I’m not sure.
Walter: What do you do? Like, you’re in a bad mood. “Oh man, I just lost more money today. I’m not going to make money this week. It’s Friday or whatever it is. What do I do?” Well, you can take a short brisk walk.
I know it sounds funny but this guy has spent his whole life, his whole entire life, looking at what can you do to put yourself in a good mood. Is it to eat a candy bar? No. Is it to have sex? No. Is it to go run a marathon or ride a bike and do this or that? No, no, no.
It turned out the one thing that was reliable, pretty much everyone can do this. Just everyone can do this is you just go for a 15-minute walk. As if you’ve kind of you’re almost like you’re late. Just a little bit of in a hurry. You’re not running but you’re not strolling either and that is the best thing.
Even listening to music didn’t do as well as going on a short brisk walk. He used to actually park — the University I went to is a massive school I think, at that time. I don’t know if it still is but it was the largest University in California but what was interesting about it was he would park so far away from the Psychology Building.
People would ask him and say, “You could just park right here. Right next to the Psychology Building. Why do you park on the other side of the campus and walk?” He’s like, “You guys don’t get it. I’m trying to have a short brisk walk. I want to get there in a good mood.”
Hugh: That’s cool.
Walter: Yeah, that’s one thing you can do too. If tapping doesn’t make sense or you don’t want to talk about your journal and write it out, talk about how you have no control. All the control you have is using your strategy, taking the right trade at the right time. Executing it as you should, getting out at the right time. Doing all that. You can do all of that and you can do it well, but you just never know.
It’s a random thing whether it’s going to be a winner or a loser. It’s a completely random roll of a dice and you have no control of that. So there’s no reason to get upset. You can control how much you risk and you can control how you react to it.
One way to react to it is to take a short brisk walk, write it out in your journal, or do some tapping. Those are probably three real simple things that just about anyone could do. You could Google tapping. Look in YouTube. Didn’t you get a box of tapping stuff or whatever like a DVD?
Hugh: Yeah. My dad actually sent that to me.
Walter: Oh, your dad sent it to you. Okay, cool.
Hugh: I think you can get the whole course in YouTube
Walter: Yeah, just go to YouTube. Adam had a great presentation at our London Conference too. He is a really good resource as well so if you’re in the Forum, you can ask him. Adam Hartley, I’m sure he’ll be happy to help you out. So there’s a lot of different ways to do it but those are probably the three simplest ways.
Hugh: Okay, cool. Sounds great. Thanks, Walter.
Walter: Thank you.