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Josh, after losing trade, do you ever get mad or upset with yourself?
So do I get upset when I lose a trade? I wish the answer was no, but yeah, I naturally get upset and I fight with myself, but I think I get tougher as time goes by. I understand success of the formula’s not a fantasy, so I understand that I can’t win all the trades. So if I placed 10 trades, I automatically expect to lose three and I’m trying to win seven. So success over time. But the trades that make me the most upset are the trades where I lose more than I should have. And what I mean by that, sometimes the markets will just be setting up perfect, right? There’ll be a monthly timeframe direction will be up, daily timeframe will be at a low price. One hour timeframe breaks into the buy zone, where an up Fibonacci, we break a counter trend line break.
So all the moons and the stars and the planets are aligning. And I go, “Hey, this looks really good. This is a better than average trading opportunity.” And then I will invest a little bit more than I should because of temptation. As much as I want to be disciplined all the time, there’s sometimes where I just say, “If I’m going to do it, this is the one to do it on.” And then the trade will go against me, stop me out. And then the market will fall a little bit and then it will go my way. Those are the trades that make me the most frustrated, because number one, I say, “Well, I lost more than I should have, so I’m going to back of trading for a little bit.” And then number two, I get mad at myself.
And I say, “If I just traded with good risk management, I could have got back into the trade and I would’ve won.” And that doesn’t happen all the time. It doesn’t happen very often, but when it does, it frustrates the heck out of me. I get mad at myself. I get embarrassed myself. And the reason why I get embarrassed is because I feel like I know better. Right? I feel like as smart as I am, as much experiences I have and how much I’ve taught, there’s people making a tremendous amount of money. So they tell me anyways, based upon the research we provide. And then, sometimes I feel like I have to be this pillar of success, but I’m human too. So do I get frustrated? No, I understand that success is a formula, it’s not a fantasy.
Do I get frustrated sometimes? Yes. Do I try to win all my trades? No. Have I accepted that I’m going to lose at least 30% of my trades? Yes, I’ve accepted that. But if I lose more than 30% of my trades, that’s when I get aggravated with myself. If I break a risk management rule, I get really frustrated and embarrassed with myself. I think my level’s a little bit more heightened because I’m in front of thousands of people throughout the week. So, anyone at home who doesn’t educate other people when they lose, they don’t have any criticism other than their selves and their loved ones, which realistically, those are tough critics. But it’s not like yourself, your loved ones and then thousands of people. So, I think that’s a little bit more on my end. I guess the bigger question’s going to be, what can you do? What have I learned with my frustration over the years? What I’ve learned is risk management pretty much solves almost anything.
Losing is a part of trading. It is. When you place 10 trades, you’re going to lose at least 30% of them, doesn’t matter what you do or how you do it. My opinion, 30% default. Some people like, “Well, I don’t want to do that.” Well, that’s that’s business. That’s the way it goes. When you run a business, you don’t get to keep all the money you make. You have what’s called overhead and you got to pay employees. You got to pay taxes, you got to pay rent and utilities and who knows cost of goods, right? And things come up. So you don’t get to keep everything that you make inside of business. So that’s called overhead. I look at losing trades as overhead. It’s just like any business, when overhead’s a little bit higher than what should be, frustration sets in. And so that’s what I have learned is try to look at things differently.
Risk management solves a lot of these issues. Stick to those rules. If you risk too much, you lose too much. So don’t do that and success over time, not one time. All right? It’s Joshua Martinez.
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