Inverse losing? That sounds like a strange thing you think about. But actually it’s not. When we look at or try to find at least the causes of what gets you to consistently lose then you have to ask, can we simply do the opposite and start winning?
There is a story of a certain daytrading firm, a couple decades ago, that noticed a trend with their beginner students. Even though they taught their students their various strategies, when they got into trading, their students, in my opinion, not only were not trained well enough, those students didn’t get enough demo practice. So when the emotions were cranked up in live trading, they started making a lot of common mistakes, on a consistent basis. They just refused to obey any trading rules or logic, most students most of the time. They insisted trading should be easier than it is and went against the markets. Consequently they had an extraordinary rate of losing up near 90%.
So one of the members at the broker firm had the idea to develop software that would automatically take the opposite of their beginner students trades. So they did and the story goes, up to the point I was told about it, that they made $4 miilliioonn (misspelled on purpose) by doing the opposite of their beginner student’s trades!
Now I don’t know if they were impinging on any sort of rules or laws but I thought that was super interesting on the inner game psychological approach to trading. This daytrading brokerage firm essentially inversed losing! Now they didn’t achieve losing and reversal in themselves they just piggybacked the consistently losing trades of their beginner students. Hopefully they shared some of those profits with their students later but I don’t know. It was a story told to me and I assumed it was true. It certainly sounds likely.
What I found in over 35 years in the markets is that there are psychological reasons to why a person loses a lot of the time. If one can deal with those psychological reasons they can do much better.
Additionally if one can find and use all of the losing mental/emotional triggers that would motivate and get them to actually click into the wrong trades and then use those mental /emotional triggers as an alert to the cerebral mind, then one can use the cerebral mind to “tag” those losing emotional thoughts as “aha” triggers to go in and do the opposite trade! From there, winning probability can be increased dramatically. That just takes practice. I needs to be worked out.
Yes it’s insulting to the ego to basically do the opposite of what you think is right in trading, but doing so could also be a great learning lesson to correct in your thinking. You may want to start doing this type of concept on a demo account or use old-fashioned paper trading where you use a pen and paper and write down or type it out in a word document etc.
Walk through the thoughts that come in your head while watching the charts and write those down. Try to figure out where those thoughts came from and analyze everything. Find the triggers that are associated with you actually taking action on losing trades. Now when you find the root issues you can do something about it. Now you can find what triggers losing and start to do the opposite or other things that trigger winning.
Winning in the markets usually does not feel comfortable and exciting. It’s can feel strange even, especially when you first get started converting from loser trader to winner trader. But that’s just the transition you need to make. We all have to learn one way or another sometimes.
To help you out on this journey we have several courses and Masters programs that can help you get started right away.
Additionally if you can work up the ability to trade a system, a trading system that will fit your personality and that will be really simple and fun to trade, then a trading system can certainly and instantly put you on the path towards making the correct decisions in real time and dramatically increase winning percentage.