[Anger Management Recognized by Science] Stop getting defeated and exploding in anger.
Hello, this is Shimoyama.
Today, I’m here with a proposal for those who are
anxious and prone to anger. This is for you.
When the market doesn’t move as you expect, you end up wasting time with the mouse or smartphone,
having thrown it against the wall many times, haven’t you?
When you have unrealized losses, you become unable to work,
you can’t help but become bothered, can you?
As humans, we are beings with emotions,
and anger or worrycannot be completely eliminated.
However, you can learn to cope so you are not manipulated by anger or worry.
Today, I will introduce
how to cope with them.
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Throwing the mouse is counterproductive!
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When you think it will rise and you win, the stock price falls,
and you feel as if someone is controlling it from behind, you’re hit with that sensation,
and anger wells up.
That’s a common market scenario, isn’t it?
So, when you fall into such a situation,
how should you cope so that anger subsides?
Crawling into bed and shouting loudly, pounding a pillow,
slamming your smartphone or mouse on the bed,
venting out your excess anger on something,
I think many people try to do that.
to dissipate it.
In general,
these coping methods
are believed to be effective.
But are such actions really effective?
Think back to the time you slammed the mouse down.
Did the anger subside?
Rather than subside,
anger may have surged even more.
That’s right.
The act of venting anger onto something
does not calm anger; it tends to amplify it.
This has been demonstrated, in experiments by Brad Bushman of Iowa State University,
as cited in his work.
So, how should anger be calmed?
The answer is here.
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In order to relieve stress,
putting on boxing gloves,
pounding a pillow,
does not calm aggressive emotions; it may even heighten them.
Instead, by focusing on the positive aspects drawn from negative events,
you can greatly calm anger.
Richard Wiseman
“Why the Science of Success Decides”
September 10, 2012, First Edition
P.190 quoted
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As described above,
thinking about the positive side of the event
will calm your anger.
When the market crashes hard and you are caught by a forced liquidation, you may lose your composure,
but please try to calm yourself.
And
consider the positive aspects of that forced liquidation.
“There is a positive side to every negative event.”
Saying that may sound like empty rhetoric.
However, any event can look completely different if you change your perspective by one angle.
Even if you incur substantial losses from a forced liquidation,
there are things to learn, and
as long as you haven’t lost all your funds,
in the worst possible scenario, it might have yielded the best outcome.
In any case, try to find hope even in the worst.
As you do,
your anger will gradually
ease.
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To the anxious you.
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“If you hold a position and unrealized losses occur, you can’t help but worry and end up breaking your rules in trades.”
Perhaps you are that type as well.
So, how should someone who is anxious and tends to crumble mentally during trades cope?
Here we will share an actual exchange with K, a member of the Stock Academy, who came asking,
“I can’t help but worry when I hold a position.” This is the conversation with K, a member of the Stock Academy.
We will introduce it here.
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What the Stock Academy calls the “Wave Riding Investment Method”
divides funds into five parts and usesmargin trading to balance both buy and sell positions,
to accumulate profits.
K;
“For example, if I hold two long positions and one short position,
and a crash occurs in this state, I get scared…”
Shimoyama;
“Understood.First, you should consciously
grasp your current situation clearly, starting there.”
K;
“What do you mean?”
Shimoyama;
“If, as K says, a real crash occurs,
what price level can you endure to?
We must consider that in advance.”
K;
“Yes.”
Shimoyama;
“Then, for example,
you would decide in advance to place a sell order if the price falls to this level,
and so on.”
K;
“Having a sell position means creating a loss limit with two buys and two sells, right?”
Shimoyama;
“Yes.”
“Furthermore, even if the crash deepens, we should create a state where losses do not increase any further,
that is the point.”
In this way, if you have thought through coping methods in advance for adverse situations,
you won’t have to worry so much.
K;
“Indeed, that’s true…
I understand what you’re saying.
But I feel resistant to the idea of holding sells at a low price…
Shimoyama;
“Why is that?”
K;
“If it rebounds from there and rises,
the additional sells you hold may be left behind, you know?”
In that case, you may feel you cannot actually add sells.”
Shimoyama;
“Indeed, there is a possibility that the additional sells could be left behind.
However, first consider the possibility of further decline and prioritize stopping the losses.
For example…””
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Stopping losses is just one example of a coping method, but through this exchange
what I wanted to convey to you is that
“if you can think ahead about what might happen next, you don’t have to worry so much, right?”
As a worried person, please make it a habit to think through how to respond to adverse situations before you hold a position.
But even so,
looking ahead too far,
there will probably be many who don’t know how to cope.
For example, like K,
“I worry if sells are left behind.”
Some people can’t see coping methods far ahead.
If you’ve been reading our previous newsletters,
you may understand coping methods, but
if you can’t think of them on the spot, please try to think for yourself.
First, think about your own coping method.
When using Wave Riding Investment Method,
the concrete coping method
will be explained again in future newsletters.
Now, to summarize.
Today,
to calm anger
and to be freed from anxiety,
I conveyed:
- Look for positives in the worst events
- Think through coping methods in advance and hold positions
as a rule.
I sincerely hope this contributes to your gains.
With that, thank you for reading until the end today as well.
