Want to Stop Losing? It’s Time to Shift Your Focus
Nov 21, 2024Reading Time: 5 min
Every day, thousands of traders sit down at their desks with one goal: to recover their losses and take back what the market has taken from them. In their mind, losses feel like a problem that needs to be solved.
The outcome? It’s always the same—more losses, mounting frustration, burnout, and countless missed opportunities.
By focusing on recovering losses instead of improving your process, growth, and "present moment" you set yourself up for failure.
As a trader, you’re more than just someone placing trades. You’re the CEO, the strategist, the technician, and yes, even your own mindset coach. So the most important asset that you have to fulfill all these roles is your energy. The energy is limitless, but it's also very powerful. And when used without care and clear intention it can burn you.
When energy (= your focus) is directed toward fixing mistakes or recovering from setbacks, you’re not looking ahead. You may miss opportunities, and a path leading to success. If you're not focusing on the growth of your business, the growth won't happen. And by choosing to focus solely on the outcome, but not the steps that lead you to your destination, you might never get there. Creating your future happens in the present moment and that's where your focus needs to be.
Focusing on the wrong things keeps you stuck and it's a draining, repetitive loop because you feel like you're doing a lot, but you're not moving forward.
The only solution is aligning your energy—this is one of the first things that my clients are working on.
In this article, I’m going to show you how to break out of the exhausting loop of chasing mistakes and setbacks, and instead, align your energy with what truly drives success.
The Hidden Cost of Misplaced Focus
What’s going through a trader’s mind after a losing trade?
The heart races, stress feels overwhelming, and the mind replays the moment they click "buy," over and over again.
Then, the spiral begins. Scrolling through past trades, revisiting every mistake, tallying up missed opportunities, and calculating how much farther ahead they could have been if only they’d done things differently.
Suddenly, the only goal becomes erasing the loss. “If I can just make this back, everything will be fine.”
This fixation leads to revenge trading—a cycle of impulsive, emotionally driven decisions aimed at “recovering” losses. But this isn’t driven by strategy or sound logic; it’s fueled by the pain of what’s already gone.
And it doesn’t stop there.
Some traders fixate on the “one opportunity” they missed, obsessing over the trade that could have changed everything. Others scroll through social media, comparing themselves to traders posting big wins, feeling inadequate or left behind.
And then there’s fear—the fear of losing more, the fear of being wrong. It creeps in, creating hesitation that keeps traders stuck on the sidelines, unable to take the actions needed for real progress.
When your focus is consumed by regret, comparison, and fear, the consequences are serious. These distractions drain your energy, cloud your judgment, and undermine your ability to perform at your best.
It’s not just about the loss—it’s about the mental and emotional toll of focusing on the wrong things.
The Consequences of Staying Stuck
If your focus remains on the wrong things, here’s what you’re likely to experience:
- Burnout: Constantly dwelling on mistakes and losses drain your mental energy, leaving you emotionally exhausted and unmotivated.
- Impulsive Trades: In moments of frustration or panic, you abandon your strategy, leading to poorly thought-out decisions that amplify losses and rumination about outcomes.
- Missed Opportunities: Obsessing over what could have been blinds you to valuable lessons and new trading opportunities that could move you forward.
- Feeling Trapped: The cycle of regret and recovery creates a sense of being. "almost there" and being stuck at the same time, trapping you in an emotional rollercoaster and making progress impossible.
- Eroded Confidence: Repeated focus on setbacks chips away at your self-belief, leaving you doubting your ability to trade and succeed.
- Clouded Judgment: Emotional overwhelm distorts your ability to think clearly, causing you to act on feelings instead of following your plan.
Let me share a real example:
I once coached a trader who had lost $10,000 in a single month. Every morning, he’d sit down determined to "make it back," but by the end of the day, his account balance had dipped even lower.
He felt trapped, constantly banging his head against the wall, wondering: “What I’m doing wrong!?”
The problem wasn’t his strategy—it was his focus.
He was so consumed by trying to recover his losses that he couldn’t see the bigger picture. His energy was drained by the wrong priorities, leading to impulsive decisions that dug the hole deeper.
When we shifted his focus to what truly mattered—managing risk and sticking to his process—everything began to change. He stopped trying to "win back" money and started focusing on protecting his capital.
Within three months, he didn’t just recover the $10,000 loss—he built a system that made him consistently profitable.
The Power of Focusing Energy On the Right Things
The easiest way to understand what you should do to avoid this costly mistake is to imagine your focus as a flashlight. The light then is your energy.
If you focus the light—your energy—solely on the outcome, or on past mistakes, you risk overlooking the potholes in your strategy, maybe sabotaging patterns in your behavior and missing new opportunities ahead. But if you choose to flash the light on the path in front of you—your process, growth opportunities, and risk management then, your focus in on what matters and what allows you to take the next step forward.
When you shift your focus, you’ll quickly realize just how past mistakes and grief of losses clouded your judgment. This little change in your mind, focusing on what truly matters, can change everything.
So what if your next big breakthrough isn’t about learning a new strategy but shifting your attention?
Shifting Your Focus to What Matters
Here’s what you can do to Focus your energy on the right things:
1. Master the Process
Stop chasing outcomes and start perfecting your routine. A well-structured process removes the guesswork, giving you clarity and control.
- Daily Intentions: Begin each day by defining your main focus (e.g., following your plan, managing risk, or practicing patience).
- Mindful Execution: Use mindfulness techniques, like deep breathing or grounding exercises, to stay present during trades and reduce emotional noise.
- Post-Trade Reset: End each session by reviewing what went well and what can be improved. Realign your focus for tomorrow.
- Eliminate Distractions: Create a focused environment—turn off notifications, set specific trading hours, and eliminate anything that pulls you off track.
2. Prioritize Risk Management
Shift your focus from how much you can make to executing your plan. Risk management is the backbone of every successful trader’s strategy. So, when you make a plan think about:
- Position Sizing: Only risk what you’re comfortable losing—this reduces emotional attachment to trades and makes trade management easier.
- Stop-Loss Discipline: Use clear, predetermined stop-loss levels to protect your capital and avoid emotional decision-making.
- Capital Preservation: Treat every dollar in your account like it’s your lifeline. Your primary goal is to stay in the game.
3. Focus on Growth, Not Perfection
Every trade, whether it’s a win or a loss, is a chance to learn. Instead of fixating on what went wrong, shift your mindset to uncover the lesson behind the outcome and rewrite your inner narrative.
- Keep a Trading Journal: Track not just your trades, but your emotions and decisions. Over time, you’ll see patterns that highlight areas for improvement.
- Celebrate Progress: Regularly review your journal to acknowledge how far you’ve come. Growth is about incremental improvements, not overnight success.
- Ask Better Questions: After every trade, ask yourself, “What did I do well? What can I improve next time?”
- Rewrite Your Story: Replace thoughts like “I need to win back my losses” with “I’m building a process that supports consistent success.” Shift your focus from outcomes to actions that reinforce positive habits and discipline.
Final Thoughts
Shifting your focus isn’t about making drastic changes overnight—it’s about consistently redirecting your energy to areas that matter most: your process, risk management, and growth.
So, where will you focus your energy today?