Trading Risk Management
In this video, Stuart McPhee talks about how you can briefly about handling the difficult times in trading. He presented at the New York Traders Expo in the United States on Sunday 22nd February 2009. He says that he visited back in 1998 the World Trade Center and now he is remembering how beautiful it was. It is a very emotional place to be and it remembers him of trading. Situations like in World Trade Center case allows you to put things in two perspectives, how do you deal with situations where things don't work, when you lose money.
When he thinks at those tragedies that are happening in the world and at the times when he lose five hundred dollars on a trade, he asks himself if that is the worst thing that can happen. He still has his health, he still has his home, his family, his children and probably losing those dollars is not the worst thing that can happen. If trading does not work for you it is probably not such a big loss. If you have a couple of losing trades in a row, which is probably not the worst thing that can happen to you. Hundred of people are losing their homes; there are extraordinary tragedies which are destroying people lives.
When you think at these things and see that a lot worst things can happen to you, you really have to put things into perspective. You need to deal with loses, you need to deal with situations where things don't go as you wish. You also need to realise that things can go worse and perhaps life is not so bad as you think. Think at all good things in your life. Trading is just a small part of what you do and what you are.