Mastering Quick Recovery from Trading Mistakes
Leveraging the Neuroscience of Making Mistakes to Your Advantage
Find the audio version of this post at the bottom.
What do you do after making a trading mistake? Do you ignore it and keep trading? Do you feel so guilty that it affects your next decision? Do you try to compensate for it?
The truth is, it doesn’t matter much — the mistake is already made. Whether it’s a late entry, an early profit take, or an oversized position, you’re left with an opportunity to improve for next time.
Yes, mistakes are opportunities to learn—it’s a cliché. Everyone’s heard it, but in my experience, it’s still a big challenge for many traders to apply it practically. It’s hard to think this way if you’re a perfectionist, and I know many of you reading this are.
One thing I’ve found true is that a change in mindset often comes with more information.
If you don’t understand how sleep affects decision-making, you won’t feel as motivated to change your sleep habits.
If you don’t know much about nutrition, you won’t care much about your diet.
You can only care as much as your level of knowledge allows.
It’s when we dive into learning and get interested that we start to care! And change starts there — you have to care enough to make it happen!
That’s one of the purposes of this publication — to arm you with the psychological and scientific knowledge about the brain so you can make better decisions.
When it comes to trading mistakes, I’ve found something that can change your perspective and help you put the “mistakes are opportunities” mindset into practice.
Hold on, perfectionists, this one’s for you!
This edition will dive into relevant neuroscience and psychology about mistakes. By the end, you’ll be armed with the information that allows you to break the habit of letting one trading mistake spill into a bigger blow-up.