Revenge Trader Syndrome*
Continuing on in this educational series, we examine the second filter called the Revenge Trader Syndrome*.
The Revenge Trader Syndrome
The Revenge Trader Syndrome is the 2nd of the seven levels and is slightly more positive, or anabolic, than the Defeated Trader Syndrome. If you remember from the Defeated Trader Syndrome’s characteristics, we were in helpless state of mind. Not really able to make any decision and feeling pretty bad about the decisions we were making, unable to move forward. The name, Revenge Trader, being the next level up, aptly describes the general nature of this filter. That means, getting mad is better, more positive reaction than doing nothing. Let’s look at this level’s characteristics.
Some of the feeling and thoughts of this level:
- Being alone, me against the market.
- Betrayal, a sense of being wronged.
- Anger, at mostly others of the market but can be directed at one’s self.
To help identify some of this for yourself, you might hear yourself saying some to these things:
- “Trading is hard. It’s one fight after another.”
- “This is a dog eat dog world.”
- “There is only right and wrong, no grey area.”
Consequently, this self talk can lead to some of these behaviors:
- Defiance – trading to get back at the market.
- Revenge – this is pretty self explanatory
- Proving you were right about your analysis
I’m going to venture to say that this characteristic is familiar to many traders. That’s understandable because there is often a passion to make trading work in one’s life. That passion can be a great motivator but it also can cloud our judgment regarding our expectations. The desire to have that trade get to your profit target can be overwhelming if you’re not aware of the underlining filter being used. The desire of having a trade hit its target can be translated into an affirmation to you that you are “right”. The desire to be “right”, therefore, can be a powerful enticement to stay in the market when common sense says otherwise.
This posting is just an introduction to the characteristics of the Revenge Trader Syndrome. Your Revenge Trader will be uniquely yours and be a reflection of how you look at the world. If you would like to talk about your particular brand of the Revenge Trader, sign up for a complementary exploration coaching call. Click this link to find an available time to meet. Be sure to give a brief description of how Defeated Trader shows up in your trading results.
In the next posting, we will examine how we can calm the Revenge Trader and take control of its capabilities.
*The educational material contained is gratefully adapted from the training received at the Institute for Professional Excellence in Coaching (iPEC), its founder Bruce D Schneider, and his bestselling book Energy Leadership.