How To Trade When You're Mad?
A tough trading day taught me the importance of slowing down, staying disciplined, and turning mistakes into valuable lessons.
Hello Trade Warriors!
Have you ever been so mad while trading that you felt like you were going to explode? If so, you're not alone. Today, I’m sharing a fresh and humbling experience that might resonate with many of you.
Lessons from a Tough Trading Day
The Setup: A Confident Trade
One key part of my trading strategy is buying SPY options—usually one-day to one-week expirations, typically at or in the money. (If some of this is unfamiliar, stay tuned—I’ll be breaking down options trading in future articles.)
Earlier this week, I bought SPY call options expiring in a week. My analysis suggested an upward trend, and my confidence was high. Fast forward to this morning (11/21): SPY was up significantly in premarket trading.
I had already set limit orders to take profits when the market opened. But just before the bell, the price tanked by about $6, preventing my orders from getting filled.
This sudden drop wasn’t entirely surprising. Premarket and after-hours trading often see wild price swings due to lower volume, making it easier for large players to influence prices.
The Opportunity and the Mistake
The drop created a prime buying opportunity. After the market opened, SPY hit the premarket low and rebounded off a strong support level. Recognizing this, I quickly opened my app to capitalize on the opportunity. I wanted to add to my position and lock in a quick profit.
In my rush, I made a critical mistake. Instead of buying two additional contracts, I accidentally sold two of my existing contracts. When I reviewed my position, I was stunned—I only had one contract left instead of the five I should have had.
I was enraged. 🤯
The Emotional Spiral
I briefly considered buying back the missing contracts to fix the mistake. However, I stopped myself. Trading in a state of anger is a recipe for disaster, and I knew it. I decided to step back and avoid any emotionally driven trades.
Over the next hour, I watched SPY climb back toward its premarket highs. The frustration lingered, accompanied by a serious case of FOMO. I couldn’t stop thinking about how much I could have profited if I’d simply corrected my mistake.
But I reminded myself of an essential rule: never trade when angry.
The Bigger Picture
While I was disappointed, I recognized the importance of maintaining discipline. What if SPY hadn’t recovered? What if the price had continued to drop? Trading out of frustration could have compounded my losses and undermined my self-control. Mistakes are painful, but they’re also part of the journey.
Key Takeaways
Here are the lessons I took from this experience:
Slow Down and Stay Careful:
Even in fast-moving markets, rushing can lead to costly mistakes. I need to double-check every trade before executing, especially in high-pressure situations.Emotional Discipline is Crucial:
Walking away was hard, but it was the right decision. Reacting emotionally could have easily turned a manageable mistake into a much larger loss.Every setback is a lesson:
Trading will test your patience and discipline. Mistakes are inevitable, but how you handle them defines your long-term success.
Final Thoughts
This was a frustrating experience, but it reinforced my commitment to emotional discipline. Mistakes happen—even to seasoned traders. The key is to ensure they don’t derail your strategy or confidence.
Have you ever faced a similar situation? What rules do you follow to stay disciplined when emotions run high? Let’s discuss!
Stay focused, stay humble, and keep learning.
— TJ Stubbs
Founder, Light Trades