Trading Risk Management: the Higher-Level Stop Loss Many Traders Overlook

Okay. While we're on the topic of risk management, you know, there, there are certain things that's real easy to forget as a trader and when you overlook them and these things kind of fall by the wayside, it winds up costing you and they don't come to mind until, you know, you're taking a beating and then it's like, or, you know, things get really stressful. And so that's what I want to talk to you about right now is one particular area where there's a, it's actually a higher level stop loss. I mean, of course we're all familiar with the, you know, stop loss within a, you know, an individual trade. You know, the market was against you, we wrong on what, you know, we thought the market was going to do that's going to get us out and help, help us, you know, cut our losses, keep them small. But there's another level really that we need to be looking at as far as stop loss. And what I'm talking about here, I learned from a mentor of mine years ago and I really loved it when I first heard about it because it makes so much sense. I mean, it's so easy to get caught up in the notion of like, you know, I just need to learn more, I need to do more, I need to put in more time and more, more, more. And after a while it's like, yeah, man, we're just so overburdened mentally and time wise with everything. It's, it gets hard to function and do well and it's not fun anymore and it's a chore. And so what I'm talking about here, what this, what my mentor had taught me was to once in a while periodically sit down and make a stop doing list, which I thought was the coolest idea. It's like just take a look at all the different areas where you're spending your time and look at the things that you've kind of added to your daily or weekly routine, taking up time and mental energy and resources and just really take a serious look at it and say, should I stop doing this? Can I stop doing this? And you know, it won't hurt what I'm trying to accomplish. It won't keep me from getting to my goals. And so, yeah, I mean, because if you're wanting to do more or if you just wanted to, you know, give yourself a break from the stress, lower your stress levels, you know, again, you know, lower that feeling of overwhelm and just take a look at it and say, okay, yeah, you know, I Love learning about trading, but you know, I'm watching all these videos and the podcast and you know, going to the sites and watching webinars and. But is that really helpful? Do you really need more information right now or do you need maybe just some mental space, maybe some more time where you're, you know, taking care of yourself physically and you know, taking time for reading or meditation or just plain getting enough sleep and you know, all these things that you've added to your day or have been crowding out these other things that are really your self care that, you know, kind of work against you, bringing your best self to your training. So it's really a good exercise and even from the perspective of okay, well maybe just, you know, okay, you know, I see that, you know, there is something over here that I want to, you know, work on. There is some training that I want to pursue by stop doing certain things that frees up time to pursue the stuff that is going to move you toward your goals. And so you want again, you want to take a look at the things that, you know, you're filling your time with that aren't necessarily helpful. More information, you know, more strategies, more how other people trade may or may not be helpful for you right now because you probably have already experienced, have been exposed to enough strategies and you know, views of the market and all that kind of stuff where all this other, you know, information, it might be entertaining or, you know, interesting but it's not necessarily helpful and it is taking up mental energy, it's taking up your time that again could be spent on self care or just, heck, just enjoying life, you know, instead of putting, you know, putting in another hour watching, you know, a webinar on some guys, you know, clever strategy, go for a walk, get outside, spend some time with your wife or your kids. And again, because that's going to be a better investment in yourself than just consuming more information. So really? Yeah, if you just, if you need to, you know, give yourself a break a little bit or just plain lighten your load, take a serious look at, you know, sit down with pen and paper or on your computer, whatever, list out all the things that you have going on and what you'll probably find when you do this. If you look at all the stuff that you have going on, you're going to look at it and say, good grief, how am I going to fit all this into a week? And then yeah, you just plain need to look at it and say, what can I eliminate? You know, the same thing with your email inbox you know, how many, how many email lists have you subscribed to? And it's like, yes, they're, they're interesting or, you know, the, whatever, maybe a little entertaining, but they're taking up time and they're, they're taking up mental energy. And so, and I'm sure you know what I'm talking about. I mean, some people get absolutely crazy with emails. You know, they'll send you three emails a day, seven days a week, and then when they're promoting somebody, it's triple that for three weeks. So, yeah, you need to go through and unsubscribe and again, create the Stop Doing list. List out all the stuff you have going on and decide what you're going to stop doing, what you can give up that really isn't going to hurt you. And so it's going to free up time for you. It's going to free up time to pursue things that will move you toward your goals. So again, take a few minutes, make the list, look at the stuff you're going to stop doing. I mean, this is the stop loss on your time and your mental energy. Because if you think about it, yeah, you're piling on more and more and more and more, but it's taking away from your personal capital account, your confidence, your time, your mental energy, how you're feeling about yourself, your time to just enjoy life. So, so all these things, that's the price that they have. And so it's like, okay, yeah, I need to just cut these out and free up some time for myself and for better investment of my time. Anyway, hope this been helpful. If it has, give me a like and a subscribe down below. And speaking of stopping unhelpful things, you can swing by InsideOutTrading.com, pick up a copy of my latest short guide. It's called Break the Cycle. How to Stop doing the Things that Are Reinforcing the Bad Things from the Past. And it's a list of 10 things that you can do in 20 minutes, including reading the guide guide to help you again, break the cycle of making money and losing money. And it's free. So again, swingmyinsideouttrading.com pick up a copy of Break the cycle. You'll enjoy. 20 minutes from now you can be feeling a whole, you know, a sense of relief regarding your trading and again, you know, just interrupting the, the bad things that have been repeating from the past. So again, hope this has been helpful. Give me a like and a subscribe down below. Share this with your friends and swing by Inside Out Trading.com pick up a copy of Break the Cycle. We'll talk to you soon. Chairs.