Today host Kim Ann Curtin takes another look at the motivations behind Stephen Johnson’s losing trades. After a big winning streak, another side of him took over.

Everyone places losing trades at some point. It’s an inevitable part of the game. But is there something in us that seeks to make them worse? 

Today’s episode takes a deeper look at the psychology behind losing trades. Why do we get in our own way when things are going well? 

Find out on this week’s SteadyTrade podcast.

We Hate Losing Trades … or Do We? 

Everyone wants to win. We want freedom, tendies, and bragging rights. But is that all we really want out of life? 

In an industry where everyone’s quick to post their gains and stay silent on their losses, it can seem like winning is all we need.

So is it possible to stay at our best when we’re on a winning streak? After all, overconfidence can get the best of us. Especially when tickers start printing money like crazy. 

The human brain is wired to get used to things. So if you’ve been on a roll, it’s good to check your mindset. Are you still in the zone that got you started on your winning streak? It’s smart to evaluate if something else has taken over…

Stephen shares a recent trade that nearly blew up his account. He’s especially disappointed because he’s been there before. So he knew what he was doing but just couldn’t stop himself!

Stephen studied the trade and saw that it didn’t fit his trading checklist. In fact, he could tell it would go against him, but he still took it anyway.

It’s human to make mistakes — and to even make them on purpose.

But if we know better, why don’t we always do better? Why isn’t knowing enough to make us stop losing trades? 

It’s possible there’s something we want more than winning … Or that we’re so afraid of losing we do it on purpose to prove we can get past it. There’s plenty of trading psychology to dig into in this episode.

Loss Is Temporary

When we’re winning, it feels amazing, and we want it to last forever. No one wants to experience the setback of losing trades ever again. 

But we can still learn from our losses… 

When a feeling is fresh and compelling, our brain imagines it will last forever. If it’s a good feeling, we’re happy with that idea. If it’s a bad feeling, we’re afraid of it…

We start to wonder if there’s something wrong with us. What if we keep losing? It’s important to remember that every experience is temporary. Winning is temporary — and so is losing. 

When it comes to trading, winning means staying in the game. That doesn’t mean bag holding your losing trades and making them worse. That means cutting your losses quickly, with enough money left in the pot to trade another day.

It’s the same thing with our personal lives. Kim shares a vulnerable story about her crush on a longtime friend. Her crush was too big to ignore, but she didn’t want to tell him about it. She was scared to feel the pain of rejection. 

Then a friend gave her some wise advice about resilience…

The new perspective was just the motivation she needed to stop pining and take a chance. And this lesson absolutely applies to trading.

What Can You Gain From Losing Trades?

Many traders feel ashamed of their losses. A loss feels like rejection.

But is it possible to gain something from a loss

After all, everyone loses at some point. So could you feel a sense of connection when you have a similar experience as someone else? Even if that person’s halfway across the world and you connect online? 

Kim and Stephen discover some surprising truths about staying connected during stay-at-home orders. Tune in to hear how they’ve impacted his trading game. 

It’s not enough to know the right technicals, the right strategies, and the right stocks in play. You have to know why you’re in the game in the first place. 

That will keep changing the longer you trade. Turns out you can’t ignore your emotions. They’re a big part of your ongoing trading journey. 

The better you know yourself, the more decisive you’ll become. 

To take the trade … or not to take the trade? That is the question.

The answer depends on you. When you understand what you want from the trade, you’ll gain something better than a win or a loss — resilience and potential freedom. 

Isn’t that what every trader wants? 

What Do You Think?

Is there a pattern behind your losing trades? What inspires you to stay committed to trading? We’d love to hear what you think, so drop a comment. 

Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!

Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.

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Meet Our Hosts

Get to know Tim Bohen, Stephen Johnson, and Kim Ann Curtin here.

Follow our hosts on social media…

Tim Bohen

Twitter: @tbohen

Instagram: @tbohen

Stephen Johnson

Twitter: @Jonk87

Instagram: @stephenjonk87