Here’s what’s inside this episode: What is “reframing your losses?” How do you “focus” on your trading targets? Why drawdowns do *this thing* to your system execution… and the importance of aiming for the “bigger fish.”

You’ll see some of the important factors to consider when making decisions in the midst of a drawdown, how to “reframe” and how to avoid making one of the “classic” trading mistakes.

Darren offers a tip for finding your comfort zone as a trader and for defining the best strategy for you.

Download (Duration: 18:40 /21.3 MB)

In this episode:

00:46 – still too attached

02:43 – reframing losses

05:19 – building bridges and skyscrapers

07:03 – black swan events

08:18 – in the midst of a serious drawdown

09:33 – what feeds into a gambler’s fallacy?

11:40 – a big trap for traders

15:13 – focus on single trades

17:22 – a number’s game

18:13 – the easiest way to earn money

Tweetables:

Do my next twenty trades fit with my system? [Click To Tweet].

Keep a journal and record of trades that you did. [Click To Tweet].

Don’t throw a profitable trading system because of a drawdown. [Click To Tweet].

Download The Full Episode 54 Transcript Here

Darren: It’s about that mindset, it’s about seeing trading as being the numbers game and trying to  work the numbers in your favor. It’s not about being able to read the market and pick the exact moment/time to get into the market and read the conditions and always pick the right exit…

Announcer: Two Traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome to the Two Traders Podcast. How are you today, Darren?

Darren: I’m good. Thanks, Walter.

Walter: Cool! We have this question from a listener and the question is: I’m still too attached to single trade instead of having a focus on the bigger picture. This leads to bad decision when managing my trades, like cutting when they’re short.

What should this trader do? I have some ideas, Darren, but I’m interested in your thoughts.

Darren: I completely get where this trader is coming from. It’s something that I used to do all the time and you need to get a way of reframing your results. What’s something that’s worked for me is I used a piece of software that catalogues all my trades for me. Then, I can go to it and see what my results were week on week, what my results were month for month.

I can compare this year to last year and all of that information is available at the click of the button for me. Whenever I’m having a bad, whenever I can feel myself being affected by a few losses, a couple of trades, I will go to that — let’s say, I’ve had a bad week so far — I’ll go to that and look how I’ve done for the y...