Back in the ’90s, I used to analyze spectra in the Chemistry lab. A spectrum is a piece of scientific information plotted in 2, 3 or perhaps more dimensions. In a nutshell here, one is trying to analyze a chart in an attempt to understand the underlying chemical structure, or the results of an experiment.
In the new millenium, I moved on to Astrology charts. Here, the underlying were human beings, and one was trying to understand their destinies plotted versus time. Again it boiled down to analyzing charts.
Over the last eight years, I’ve been analyzing market charts. As in, you know, the price of an underlying equity scrip, or of a commodity, or a currency pair, plotted versus time.
Over the years, it has been pointed out to me many times (by lesser minds) that I “wasted” a good part of my professional life in the wrong line.
To be really honest, the chart-reading acumen that started developing in the Chemistry lab only became stronger with the shift to Astrology, and grows from strength to strength with its current shift to the markets. Nothing has been lost. The law of conservation of energy has proven itself to me.
I’m writing this piece for traders who are suffering or have suffered a big loss.
Your first big loss consumes you. Let it do so for a bit, but then you need to pick yourself up.
Why do I say “let it do so”?
You need to know what a big loss feels and tastes like, preferably early in your career with the stakes still small.
At this stage, believe me, nothing is lost in the loss, because there is a tremendous learning experience. Open yourself to learn from the loss. Fine-tune your emotional sensors to detect the onset of loss-triggering emotions when they happen again, so that you can take early evasive action next time around.
If you learn from your loss, you will save yourself when the stakes are high. You might even go on to make a killing for all you know, because early evasive action boosts your confidence tremendously.
The law of conservation of energy bumps into every trader, even you. It’s telling you to start viewing your big loss as a learning experience, and to take it from there. How about listening to what it is saying?