Have you ever slept with Sara? No not Sara Jessica Parker, or some Sara you met on bumble, I mean Sara. You haven't?
Trust me, we’ve all slept with her, you just need a reminder. Ever gone through an extremely traumatic experience? Maybe your car was stolen (or attempted to be), maybe you lost a loved one, or maybe it was something as stupid as a painfully expensive loss from a stupid investment? If you’re a normal human being walking on this earth and went through a shitty experience then you have slept with Sara- and maybe even a few times (you dog, you).
So who is this bitch Sara then? Sara is the emotional stages we go through as we cope with a major loss. First we are Shocked, then Angry, then comes the Rationalization, and finally the Acceptance.
When you start out trading, most new traders tend to marry Sara and can never break up with her, which is unfortunate. Our goal is to get the new trader to break up with that shitty girlfriend and get back in the game of swiping right. However spending some time with Sara is truly an essential process for every trader. This is why we hammer down starting with less, losing money sucks, doesn't matter how much you have, it is all relative. You can learn just as much from a 1% loss as you can from a 100% loss and the more zeros added to the equation, the longer most traders spend with Sara and finally accept their mistakes.
Embrace tough love and go to the pain rather than avoid it, remember no pain no gain.
Usually when faced with a major loss, most traders are shocked, “how could this name gap down 25% overnight from earnings? It was supposed to gap up to 100%!” Then it's “fuck this name I know I shouldn't have bought it”, then in time it’s, “fuck that was stupid”, and then they cross the finish line of “I won't do that dumb shit again”. Do not be afraid of Sara just be aware of her because as a trader we are our own worst enemies. The sooner you can realize that and figure out your weak spots, the sooner you can continue to improve.