Learning to Win Through Losing + Prep for Wednesday, May 3rd, 2023
Prep for Tuesday. Key tickers on watch: $XLC $CL_F $TZA $GC_F $DIA $KBWB $XLE $SVXY $NYA $ES_F $RTY_F $FAZ $SPY $VIX $IWR $SDOW $UDOW $MDY $FFIN $PM $PRU $IRDM $GE $SYY $STZ $LMT $NEM $VICI $OKE
Have you ever heard the phrase "cut your losses"? As traders, we are all too familiar with this concept. However, not all losses are created equal, and it's important to properly deal with them to learn and grow.
Live prep again starting around 6:15 US CST Live prep. During our session we walk through our prep zones for the day including $SPY, $QQQ, $VIX, $SVXY, $ES_F, $NQ_F, $RTY_F, $YM_F along with $CL_F and $GC_F.
As we’ve noted before we are building this from the ground up and our intention is to continuously add and improve. As always, we recommend doing your own research and consulting with a financial advisor before making any investment decisions, as nothing we say or suggest should be taken as a recommendation to buy, sell, or hedge any financial instruments (full disclosure here).
Learning to Win Through Losing: Why Properly Dealing with Losses is Key to Your Success.
Introduction: Tonight, we want to talk about something that we all need in our lives: comedy. Whether it's through a good stand-up routine or a funny TV show, laughter is an essential part of our wellbeing. But did you know that comedy can also be helpful in trading and business? In this post, we'll explore how quickly moving on and finding humor in difficult situations can actually lead to better decision-making and a more positive mindset. So sit back, relax, and get ready for some laughs and insights.
Section 1: Trading
As traders, we are all familiar with the feeling of losing. It can be disheartening and demotivating, and often leads us to question our strategies and abilities. However, the truth is that losses are an inevitable part of trading, and learning how to deal with them is key to long-term success in the markets.
Here are 5 key points to keep in mind when facing losses as a trader:
Accept that losses are a natural part of trading. No trader has a perfect track record, and even the most successful traders experience losses from time to time.
Don't let losses affect your emotional state. It's important to maintain a clear and level head when facing losses, as emotions can cloud your judgment and lead to further losses.
Review your trades and identify what went wrong. Take the time to analyze your losses and identify any mistakes you made or areas for improvement.
Use losses as opportunities to learn and grow. Every loss provides an opportunity to gain valuable experience and knowledge, which can help you refine your strategies and improve your performance over time.
Stick to your risk management plan. A solid risk management plan can help you minimize losses and protect your capital in the event of unexpected market movements.
By keeping these points in mind and approaching losses with a constructive mindset, you can turn them into opportunities for growth and improvement as a trader.
Section 2: Business and life
Losing is an inevitable part of life and business, and learning to cope with it is essential for growth and success. Here are some ways in which dealing with losses can be applied in various aspects of life:
Personal growth: The way we handle losses can be a reflection of our mindset and personality. Embracing losses as opportunities to learn and grow can lead to a more positive and proactive outlook on life. Accepting losses as part of the journey can help us develop resilience, perseverance, and a growth mindset.
Career development: In a professional setting, setbacks and losses can be demotivating and affect our performance. However, it is important to take a step back, assess the situation, and learn from the experience. Failure can be a powerful teacher, and acknowledging and addressing the root cause of the loss can help us develop new skills and approaches to overcome future challenges.
Entrepreneurship: Starting a business is a risky endeavor, and losses are often part of the process. However, successful entrepreneurs know how to mitigate losses and turn them into opportunities. Embracing a "fail fast, learn faster" mindset can help entrepreneurs identify and address problems early on, pivot when necessary, and make more informed decisions.
Relationships: Losing in relationships can be painful, but it can also be an opportunity for growth and self-reflection. Accepting responsibility for our mistakes and learning from our failures can help us become better partners, friends, and family members. Additionally, dealing with losses in a healthy way can help us develop empathy, compassion, and emotional intelligence.
In summary, dealing with losses is an essential skill that can be applied to various aspects of life and business. Instead of avoiding or fearing losses, we can learn to embrace them as opportunities to learn and grow.
Section 3: Real-World Examples
Michael Jordan: Considered one of the greatest basketball players of all time, Michael Jordan faced numerous losses throughout his career. But instead of getting discouraged, he used his failures as opportunities to learn and improve his game. He famously said, "I've missed more than 9000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game-winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed."
Thomas Edison: The famous inventor of the light bulb failed numerous times before finally succeeding. When asked about his failures, he famously said, "I have not failed. I've just found 10,000 ways that won't work." His ability to learn from his failures and keep pushing forward ultimately led to his success.
Steve Jobs: The late Apple co-founder faced numerous failures throughout his career, including being fired from his own company. However, he didn't let these losses defeat him. Instead, he used them as opportunities to learn and grow. He famously said, "I didn't see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods of my life."
J.K. Rowling: The author of the Harry Potter series faced numerous rejections before finally finding a publisher. But instead of giving up, she used her setbacks as opportunities to improve her writing and continue pursuing her passion. She famously said, "It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all – in which case, you fail by default."
Warren Buffett: Considered one of the most successful investors of all time, Warren Buffett has faced numerous losses throughout his career. But instead of getting discouraged, he uses his losses as opportunities to learn and improve his investment strategy. He famously said, "You only have to do a very few things right in your life so long as you don't do too many things wrong."
Actionable Tips:
Set Stop Losses: Before entering a trade, set a stop loss order at a predetermined price point. This will limit your potential losses and help you exit the trade if it goes against you.
Keep a Trading Journal: Record your trades and analyze what went wrong in trades that resulted in losses. This can help you identify patterns and improve your trading strategy.
Take Breaks: After experiencing a loss, take a step back and give yourself time to regroup. Taking breaks can help you avoid making impulsive decisions out of frustration or anger.
Practice Mindfulness: Mindfulness can help you manage the emotions that come with trading losses. By focusing on the present moment, you can avoid dwelling on the past and worrying about the future.
Learn from Mistakes: Use your losses as an opportunity to learn and grow. Analyze what went wrong and use that knowledge to improve your trading strategy in the future.
Use Risk Management Techniques: In addition to setting stop losses, consider using other risk management techniques such as position sizing and diversification to limit your potential losses.
These tips can help you deal with losses in a constructive way and turn them into opportunities for growth and improvement.
In conclusion, learning to deal with losses is an essential skill that every trader, business owner, and individual should develop. By acknowledging and accepting losses as an inevitable part of life, we can turn them into opportunities for growth, learning, and improvement. We should never allow our losses to define us or hold us back from achieving our goals. Instead, we should use them as stepping stones to move forward with renewed strength, wisdom, and resilience. Remember, the most successful people in history have all faced countless setbacks and failures on their journey to success. It is not about avoiding losses but how we respond to them that makes all the difference.
Now, let's take action and apply these tips to our trading, business, and personal lives. Remember to stay disciplined, stay focused, and always keep learning. By doing so, we can turn losses into valuable opportunities for growth and success.
Finally, always remember the words of Winston Churchill, "Success is not final, failure is not fatal: It is the courage to continue that counts."
Book Recommendations:
"Best Loser Wins" by Tom Hougaard - This book provides valuable insights on how to properly deal with losing in trading and in life. The author shares his personal experiences and strategies for finding opportunities through losses. It's a must-read for any trader looking to improve their mindset and approach to trading.
Great book if you find yourself struggling trying to overcome that slump or inconsistent results. We just finished this morning on our walk after starting this this weekend doing our weekly meal prep. Really good/quick/informative listen/read.
"The Obstacle Is the Way" by Ryan Holiday - This book draws inspiration from Stoicism, a philosophy that teaches individuals to focus on what they can control and accept what they cannot. It provides a fresh perspective on challenges and setbacks, and offers practical advice on how to turn obstacles into opportunities. It's a great read for anyone looking to develop resilience and a growth mindset.
Related to these book recommendations, we would suggest checking out an Audible 30 day trial on Amazon. Yes we know it may sound cheesy and yes we are an affiliate there, but having now used the past month+ on our evening walks it’s been a game changer. We’ve been using audible to listen to various books and it’s been really fruitful.
Prep / high interest zones:
Next are the key tickers and price zones broken into categories of Breadth, Overall, Meme, Forex / AG futures. Further below you can find the section for Expected moves (aka cheat codes) and the symmetrical extremes. If you need a summary/reminder of what these zones mean, see our earlier post.
High interest tickers & zones:
Breadth
$XLC [57.35 - 57.19]
$CL_F [76.90 - 76.19], [74.86 - 73.98], [66.13 - 65.65]
$TZA [38.04 - 37.73]
$GC_F [2069.8 - 2064.4]
$DIA [329.62 - 329.15]
$KBWB [40.59 - 40.33]
$XLE [84.06 - 83.53], [82.98 - 82.50], [79.24 - 78.88]
$SVXY [66.64 - 66.28]
$NYA [15301.80 - 15261.17]
$ES_F [4233.25 - 4230.00], [4109.25 - 4097.75], [4063.25 - 4053.75], [4028.50 - 4019.75]
$RTY_F [1782.6 - 1774.0]
$FAZ [22.55 - 22.30]
$SPY [408.00 - 407.08]
$VIX [14.38 - 14.10]
$IWR [70.51 - 70.42]
$SDOW [27.32 - 27.23]
$UDOW [61.22 - 60.83]
$MDY [462.82 - 461.10]
Overall
$FFIN [26.88 - 26.63]
$PM [99.28 - 98.85]
$PRU [82.43 - 81.81]
$IRDM [67.76 - 67.26]
$GE [105.27 - 104.94]
$SYY [79.61 - 79.21]
$STZ [233.93 - 233.52]
$LMT [446.66 - 445.26]
$NEM [48.95 - 48.57]
$VICI [31.44 - 31.30]
$OKE [63.94 - 63.76]
$AJRD [56.11 - 56.03]
$SYK [300.70 - 299.51], [287.00 - 284.34]
$DOCU [47.81 - 47.57]
$AJG [211.10 - 210.73]
$PGR [121.99 - 121.67]
$COST [491.76 - 491.10]
$EQT [32.18 - 32.00]
FOREX Futes
None for tomorrow
AG Futes
$ZL_F [51.44 - 51.39]
Meme
None for tomorrow
Expected move levels
Our post behind the expected move
Symmetrical extreme readings
In this previous article we discussed the Symmetrical extremes in more detail.
That’s all for tonight folks…just a reminder, our goal is to constantly improve and refine our proprietary AI system + this content. These tools analyze hundreds of tickers to identify high-interest areas based on multiple areas of confluence evidence. As always, we recommend doing your own research and consulting with a financial advisor before making any investment decisions, as nothing we say or suggest should be taken as a recommendation to buy, sell, or hedge any financial instruments (please read our disclaimer ).
Tools / Affiliates / etc.
Affiliates:
We are an affiliate with ApexTraderFunding.
We are an affiliate with TastyWorks.
Tools used/shown:
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