Revenge Trader Syndrome Calmed*
The characteristics of the Revenge Trader Syndrome painted a picture that many traders have experienced. That sense of being alone and that the market is out to get them is a common sensation amongst traders. Since most retail traders are physically isolated from other traders, the burden of making the “right” decision is exaggerated by feelings of aloneness, defiance or revenge.
The need to create awareness of these feelings, as we did in the Defeated Trader Syndrome Empowered, is even more important for the Revenge Trader Syndrome. The reason is that unlike the Defeated Trader Syndrome, which can mire a trader is inactivity and indecisiveness, the Revenge Trader is more likely to act on their feelings. The core feeling here is anger. Anger can motivate people to take action, in some cases, any action, to change a situation. Taking action is good. The challenge becomes to take action that is responding to the market rather than reacting to it.
We are looking to learn to be powerful verses forceful. We want to use this filter to create an inner strength so that your decisions and subsequent actions are conscious rather than unconscious.
As we discussed before, the first step is to be aware. Being angry, unfortunately, can be somewhat blinding. Have you ever been in an argument with someone and raised your voice without being aware of it? That’s the challenge to us as traders.
So awareness starts with the word “STOP.” Stop what you’re doing; stop chasing the market; stop taking action. This is one of the hardest things to do, especially if you have a little gremlin on your shoulder telling you, “Get back in! Don’t stop now, you’re going to lose!”
So this is how you take back the power of The Revenge Trader. Instead of letting that gremlin tell you what you should be doing, use that voice as your own personal indicator. Let the gremlin be the awareness that you need to begin making a change in your trading decisions.
Then, acknowledge the gremlin. Acknowledge the fact that, at that particular moment, you’re not trading at your best. You may be reacting to the trading situation instead of responding. Acknowledge that your decisions might be based in fear and not in the best interest of your trading account and certainly not in alignment with your larger trading goals.
The simplest action – STOP! Stop trading, stop risking money in the market and stop trying to prove you’re right!
These actions sound good on the surface, but they can be incredibly difficult to implement. After all, if it were as easy as I’ve just outlined, there would be no need for these types of conversations. Everyone’s version of the Revenge Trader is unique and therefore calming the trader is also unique. Your job is to understand how the Revenge Trader might be showing up for you and what the best course of action is to calm it.
If you would like to talk about your particular brand of the Revenge Trader, sign up for a complementary exploratory coaching call.Click this link to find an available time to meet. Be sure to give a brief description of how the Revenge Trader shows up in your trading results.
The next condition we’ll examine is The Good Enough Trader.
*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.