We already know that the market is an unstable environment. If we were all looking for a continuous and steady income stream, we wouldnt be in day trading. We also know that while the instability of the market can make us very wealthy, it can also shake us from time to time. Slumps, humps, and bumps are all just part of the trading game. We read about before we started trading. We still read about it, and we logically know that even if it hasnt happened to us yet, that it will. It is inevitable. Despite the preparation and the logical understanding we have come to know, the vast majority of new traders still take slumps and bumps and humps personally. We feel as though we have done something wrong despite what the news is already telling us. The ticker tape is evidence that there werent a whole bunch of better options.



Every time we beat ourselves up for not performing under poor conditions, we miss an opportunity to learn how to perform better (which might just means losing less) during a market slump. Every time we run ourselves through a home made guillotine we step on our own ability to do better, to learn more, and to take our lumps like champs. It is completely unproductive to blame ourselves for slumps. It is completely unproductive, and even counter productive, to take each slump as personal sign of incompetence.

No matter how well we have done lately, we have to remember that we can not control the market. Often our only real consolation is whether or not we are going to let the market control us. If the market hits a slump, why would any of us believe we would be immune to the effects?

When we neglect to look at the markets conditions, we arent doing a complete job. When the market starts to head for a slump you might not recognize it right away. It may take you several years to be able to recognize the onset of declining market conditions. It is another skill that needs to be honed, nurtured, and cared for the same way other trading skills are developed. You arent born with this knowledge. Despite what your buddy might be telling you, nobody was born with intimate trading knowledge.

The greatest killer of good traders is allowing a market slump to become a personal and psychological slump. It isnt necessary to carry the slump over into your own psyche. While many new traders tend to take their losses personally, there are times when you will lose money and there really wasnt any alternative plan that would have worked out better. You have to be able to accept these things as part of the overall package.

Some traders simply take a few days off when a slump has taken a toll on their psyche. This isnt always feasible, but when necessary, step back if even only for a few hours. Sometimes focusing on some of the more important things in life creates a better and more optimistic mind frame that allows for greater flexibility.

Where you are in your mind can directly affect the amount of money you lose. It is better to take a little time to collect yourself and dive back in after being refreshed by some of lifes other experiences. Trading isnt your whole life. Touching our reasons for putting up with the less than concrete circumstances can make the process more enjoyable and even more profitable.