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Hello all,
In light of current market volatility, some of us have certainly
experienced losses, sometimes major losses. I received mail from some
and replying in private, I thought a little cheering up might be useful
for others as well, so for those of you in the trenches getting beaten
up in silent, here's a little break...
These are fast markets, and typically this is a good time for market
losses. Many of us enjoy the ritual of losing more or less on this
occasion, some skip the event, some can't help it and double up, some
got a wrong invitation and actually got refunds from the market. Bless
you!
Point is no matter what, whether now or before, or maybe only later we
all go through "emotion testing day". I suppose that is part of the
business. Key is to be able to come back, ie to remain functional both
physically and emotionally. After all these are only markets, which is
not that different from video games... In the end, I believe it really
doesn't matter that much. If I were to die tonight, I would spend more
time reflecting over what I learned in this life, rather than mourning
what I did not achieve, and in particular control this particular
market. What I would regret though, is what I did not give at least a
chance, out of fear or other fake excuses.
Market losses are just that, market losses. Allthough there are two
kinds of them:
- The standard every day type one due to the short term randomness of
things,
- and the big blow, due to the market catching us on our weak side, and
testing our limits.
For the first, we have just to accept the erratic behavior of our
returns over the short run as being part of the usual business, but for
the latter, what one learns is who we really are, and what we really
want to be or to do.
That is quite invaluable actually. So many people wander around not
knowing what the hell they are doing down here... Consider the chance we
really have, to be told so clearly something needs to be worked upon!
In fact the pain we feel is proportional to the degree of resistance we
oppose to accepting what we see but don't want to admit. In the case of
trading the market, feeling pain is an early warning sign we definitely
need to do what we are currently most resisting against, which is often,
exit a losing position or reduce an oversized position in an unusually
volatile market.
Now that said, comes the difficult part: doing it! But the feeling is
great thereafter, promise!
To all of you who felt a bit depressed recently, sit back, consider what
you learnt, smile, think of the rest of your life, rest and come back
when you are proud of your climbing the learning curve. Your trading
will be much more consistent thereafter.
Wishing sincerely the best to all of you,
Gwenn
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