How To Inverse Losing In Trading

How To Inverse Losing In Tradingtrading success

Inverse losing? That sounds like a strange thing you think about. But actually it’s not.

When we look at or try to find at least the causes of what gets us to consistently lose then you have to ask, what we do the opposite?

There is a story of a daytrading firm, a couple decades ago, who noticed a trend with their begin her students. Even though they thought there be in her students a bunch of principles to go by when their money was on the line they just went every which way. And they had an extraordinary rate of losing up near 90%.

So one of the members at the broker firm had the idea to develop software that would automatically take the opposite direction of their begginer student’s trades as an expiriment. So they did and the story goes up to the point I was told about it, they made $4 million by doing the opposite of their begin her students trades!  You would think brokerage firms would be doing this as well. 

Now I don’t know if that was impinging on any sort of rules or laws but I thought that was super interesting on the inner game psychological approach to trading. This daytrading brokerage firm essentially inversed losing! Now they didn’t achieve losing and reversal in themselves they just piggybacked the consistent losing of their beginner students who refused to follow correct principles and got their emotions or egos involved. Hopefully they shared some of those profits with their students later but I don’t know.

What I found in over 35 years in the markets is that there is that psychological reasons to whty a person loses. If one can deal with those psychological reasons they can do much better. Additionally if one can and use all of the losing triggers that would motivate and gets you to actually click on the wrong trades and use those mental emotional triggers as an alert, a cerebral alert, to then go and do the opposite as much as possible, then winning probability can be increased dramatically.

Yes it’s insulting to the ego to basically do the opposite of what you think is right in trading, but doing so could be a great learning lesson today correct your thinking. You may want to start doing this type of concept, demo account or old-fashioned paper trading where you use a pen and paper and write down or type it out in a word document etc.

Walk through the thoughts that come in your head while watching the charts and write those down. Try to figure out where those thoughts came from and analyze everything. Find the triggers stacked are associated with you actually taking action on losing trades. Now when you find the root issues you can do something about it. Now you can find what triggers losing and start to do the opposite or other things that trigger winning.

Winning in the markets usually does  not feel comfortable and exciting. It’s can feel strange especially when you first get started converting from loser trader to winner trader. But that’s just the transition you need to make. We all have to learn one way or another sometimes.

To help you out on this journey here are several courses and Masters programs that can help you get started right away.

Additionally if you can work up the ability to trade a system, a trading system that will fit your personality and that will be really simple and fun to trade, then a trading system can certainly can instantly put you on the path towards making the correct decisions in real time and dramatically increase winning percentage.

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