What I Felt While Repeatedly Making Small Gains and Then Big Losses in Trading and Mental Management During the Big Losses: The First Step to Eliminating Big Losses Is Managing Yourself

Genten Mental Management.13

Big loss.
A big loss trade that wipes out profits accumulated steadily including the principal in a single trade.
From prospect theory, we are driven to accumulate steadily, and from the strong desire not to lose this effort and hard work, losses expand and a big loss often occurs.
A big loss from a salt-position trade becomes a big problem by the time you notice it.
When you over-allocate lots, the big loss scenario might have been a retreat; changing strategy to rescue it leads to averaging down becoming counterproductive—a big loss… and so on.
Even among big losses, the way you lose and the interim progress until loss is confirmed each evoke different kinds of 'regret'.
But a common feeling is that the sense of guilt creates loneliness and a unique sense of loss as if you were being rejected as a person.
I shouldn’t have stopped because that beard gave me a bad feeling...
If I had stopped when I was ahead...
If I got greedy and tried to do something about it, it was already too late...
If I had entered, it would have been different...
This feeling is only the result of a 'trading decision error', and although the outcome was not good, at the time I thought hard and made it a judgment error with some degree of acceptance as a result.
There is no end to blaming myself for making judgment errors.
In particular, the unique sense of loneliness as if you were being denied requires mental management.
◯ It is recommended to interpret that the trader inside you is a separate entity when you are trading as one individual.
Even if you mess up in trading, it doesn’t mean you’re being denied as a person.
If you start disliking or hating yourself, that is absolutely not good.
When you reflect on whether you praised the you who built up profits, you’ll get carried away or make big mistakes, so don’t praise too much.
But if you make a judgment mistake, you blame yourself.
If you break your My Trading Rules, you blame yourself; if you trade according to the rules and take profit, it’s natural that you kept the rules.
Are you cultivating another trader inside you, Gen-ten (your own name)?
As mentioned above, private self and trader self should not be treated as one.
It may sound like multiple personalities, and that’s right.
Show by doing
Tell and persuade
Let them try
If you don’t praise people, they won’t move

Discuss
Listen and acknowledge
If you don’t entrust them, people won’t grow

Watching them while grateful
If you don’t trust, nothing bears fruit
—Isoroku Yamamoto—
This is a famous quote about cultivating people.

It’s a deep topic, but I believe mental management fundamentally means fostering the other self that is a trader inside you.

I was a salesman, and in my early twenties during the start of my sales work, my superior used to press me daily to the point of a nervous breakdown.
But then I was told this.
“Your face annoys me, and I’m not trying to bully you by scolding you; why doesn’t a customer buy from you? It’s not about liking or disliking you as a person; it’s important whether they want to buy from the salesperson XX, regardless of personality. The scolding isn’t directed at you as a person, but at the salesperson XX.”
From that time, I have been coexisting my private self and business self.
When I became a manager and felt the difficulty of育成 people, I realized that mental management in trading is also about育成 people, which makes it difficult.
However, after I made rules and then broke them and had a big loss, did I direct the blame at myself?
When I felt I was night-trading, isn’t it dangerous to get carried away?
Let’s properly cultivate the other trader, XX.
With this mindset, you won’t feel lonely and you’ll have a third-person perspective.
Managing yourself as if it’s someone else's business, by coexisting with a separate personality, I think you can build a solid mental management foundation.
By the way, the trader inside me, Gen-ten, was a guy who could not keep rules.
If there was capital, I’d chase after it immediately and wouldn’t fear averaging down, just keep shooting.
If you gave me money, I’d spend it all—habit of wasteful spending!
So I promised to keep only money in my wallet that I could use.
And what happened afterward? I stopped wasteful spending and learned to endure, apparently.
So when you do a good trade, you give yourself a break and free time, and praise yourself.

My experiences as a top salesperson in real estate and as a manager育成 salespeople have taught me that FX is not just a way to make money; it is a craft, something you must be mindful of if you want to stay in it.
If you’re going to aim for higher peaks, aim for the very top.
The worlds of sales and trading are the same: with effort, you reach a certain level.
Salespeople eventually sell; traders, too, will have profitable trades if they trade.
But only a very small number survive in this world.
Second-rate people pretend they can do things they can’t.
First-rate people can even do difficult things.
Top-tier people do difficult things without much effort.
Trading can be amazing, but there are many people who are not good as people.
While making your private self grow, also cultivate trader XX.
There are many things you realize only when others teach you, but what you can teach yourself is what truly digs into the essence.

I’ll wrap it up since this has wandered a bit.
① If a big loss affects your private self mentally, you are in a state where the trader XX is absent from you.
What you did was as the trader XX, not your private you. Coexisting with another personality removes trading from affecting your home or work and makes mental management possible.
② Conversely, if you want to clearly separate your private self from trader XX, I needed a dedicated trading room. Having a trading room isn’t about whether you’ll win; it’s about treating it as mental management and putting in the best effort to apply it to daily trades.
③ Properly cultivate the other self, trader XX.
④ Aim high, strive for the super-elite. Even if you don’t reach it, you’ll find yourself becoming top-class along the way.

I’ll continue to share mental management from another angle as well.