Frustrated from losing!! What is a simple way to fix a “losing habit” through investing?

Hello.

Nice to meet you.

My name is Guava.

At our company, we routinely listen to a variety of customers, and

we feel that those who are struggling with not winning often seem to have developed a "losing habit."

Therefore, this time I would like to talk about how to cure the "losing habit" in short-term investing.

Please stay with us until the end!

In the first place, who has a "losing habit"?

• When losses pile up, they tend to bolt and go on a rampage...
• They get tired by swooning over every small win or loss...
• When they lose, the feeling of regret persists for a long time...

Such people should be cautious.

There is a strong possibility that they have a typical "losing habit."

Because,they have brought emotions into investinginto it.

People often say, "Let's trade calmly!"

and yet,

I think it is hard to completely control one's emotions.

Indeed so.

Anyone would feel bad if they lose,

and it is natural to feel happy when they gain.

Then, if we train the mind andobtain a "steel-like mentality",

will the losing habit be cured?

I believe the root problem lies deeper.

Why can't we control our emotions?

If you think about why we can't control emotions at all, it becomes easier to understand.

To put it simply,

the reason you can't control emotions is that you are not certain your trading method is correct.

For example, suppose there is a simple coin-toss game.

The rule is that if heads comes up you receive 100 times your stake, and if tails comes up you receive nothing.

Since a fair coin has a 1/2 chance of heads,

in theory this game is almost surely won (though there are astronomical probabilities of drawdowns).

Does this game have any element that involves emotions?

If I were to participate in this game, I would casually bet about 0.1% of my funds forever.

I think everyone would do the same.

Even if tails occurred 100 times in a row by miracle and misfortune,

if you keep going you will win eventually, you know it.

If we replace this with short-term investments like FX or binary options,

why can't we trade as mechanically as before?

because"we are not convinced we will win".

When you are behind and frustrated or anxious, you wonder

"Is it the trading method's fault?"

"Is it the market's fault?"

"Are everyone else against me?"

It becomes a state where you don't know what is what anymore.

Continuing to trade in such a state won't lead to wins.

Even with automated trading, if you lack the conviction to win, you will be overwhelmed by anxiety when you are losing,

you may reduce lot sizes or stop trading, and just then you might start winning,

so you might resume and then lose again,

and you could go through a terrible stretch, feeling blue from the bottom of your heart.

However, to fix this, sheer mental training is not very meaningful,

and ultimately you must acquire a trading method that you can be just as confident as in the coin-toss game to win.

Where can I find a trading method I can be confident will win?

In short, there is no absolute in the world of investing.

That would end the story, but…

What matters is,having strong reasons you can be confident will lead to winning..

In other words,you must not trade without solid justification.

That "root" can vary from person to person, but in my case,

I had an extremely poor sense for discretionary trading, so

I developed my own logic, tested it many times over long periods like ten years, and

by quantifying everything I gained a strong justification for my trading method.

If you cannot perform your own backtests,

it is perfectly fine to use something created by someone else.

Anyway, whether it is something created by others or by yourself,

you must trade with an absolutely unwavering, strong justification..

This is the panacea for curing the losing habit.

At the very least, I was able to cure it with this.

In closing

That is all for the content.

If this article has been helpful to even one person, I would be glad.

Lastly, a brief promotion,

our company is currently offering a free indicator it developed.

↓↓

https://www.gogojungle.co.jp/tools/indicators/19469

It is a simple oscillator-type indicator that is easy for beginners to use.

We have also published usage methods and backtests, so

if you are interested, please check it out!

Thank you for reading to the end.