How To Deal With Frustration

Focus on getting better

If good trading is seeing it with laser-like precision, my current view is that of the drunk old man stumbling back from the pub after six pints. I couldn't hit a winner if it slapped me in the face.

It doesn't seem like I am alone. Lately, I have received countless comments from clients and traders expressing frustration. This is particularly heightened during reporting season when there is a lot of stimulus and volatility. The cognitive load is overwhelming, and feeling disappointed in the aftermath comes naturally.

On Friday I felt particularly dejected after a particularly bad beat.

But here is the other truth- nobody cares! Sure there are sounding boards but when things go wrong, nobody cares. Every trader takes their share of bad luck. Even the most experienced succumb to absurd decisions and irrationality. The mental energy to elaborate on the bad beat story does you no good. No one cares for excuses. Only you are fully responsible for the future and getting out of the mess.

There is one mindset in which people are caught up in the idea of their talent and specialness. When things go wrong, they lose their focus and their ability to perform. They blame and vent. This becomes a slippery slope.

There is another mindset that helps people cope with setbacks, find new strategies, and act in their long-term best interest. When the shortcomings hit, they learn and improve.

Right now I am focused on the latter narrative and using recent experiences as the fuel. Because in the end, I am fully answerable for my trading business. As are you.

Here are the exercises and framework I am following to deal with frustration:

1. Change the mindset to a “growth mindset”

→See mistakes and challenges as opportunities to improve rather than insurmountable hurdles¹.

Treat each trading day as an experience to keep getting better. This is the only way to deal with the inevitable struggles. The beauty of short-term trading is the volume of reps.

Character, will, and mental toughness- it is all the same thing. It is the ability to see effort as a path to mastery and to learn from failure. All of this helps enhance skills and build knowledge over time.

I know getting into this mindset is easier said than done but next time you feel that wave of anxiety, frustration, or resistance, try to trigger the mental shift. Some tools I use include:

• A clap

• Moving the body

• Invoking imagery of past challenges I have come through

• Reading an important passage

With this growth mindset at the forefront, cue the next specific actions.

2. Pick ONE area to work on specifically

→Short-term goals create the context for action.

In a recent post, I talked about building better systems, and this all comes from a focus on what you need to do right now to get better.

For some traders, they may need to refine their trade selection. For others, the priority is to maximise the best trades through exit management. Those struggling with consistency may be better placed to focus on building structured routines across all facets of the trading business. You can’t do it all so the most important point to stress is to select one area of focus.

Right now, I am in a drawdown (Yes, I am losing money). Thus, my current goal is to get out of this hole by executing a drawdown plan. It is to accept my current situation and adapt accordingly.

3. Build solutions around this goal

→A system is the daily habits and routines that lead to the desired outcome.