Good morning, traders…
You just took a loss.
You’re sitting there replaying the trade in your head: What you should’ve done differently, why you didn’t see it coming…
And while you’re stuck in that loop, the market keeps moving.
Another setup flashes across your screen.
A clean entry. Exactly what you’ve been waiting for.
But you don’t take it because you’re still thinking about the last trade.
The one that didn’t work. The one that hurt.
If you allow one easily-avoidable mistake to compound into two, three, or ten more … you can fall into a death spiral.
And once that sinkhole of losses opens up, it’s almost impossible to crawl out.
But there are three easy ways to avoid the death spiral.
Forget About Your Last Mistake. Here’s What To Do Next…
Take the Next Trade
When you’re performing under pressure, you will mess up at some point.
That’s part of learning anything.
But if you fear losing too much, it kills your ability to move forward.
And if you can’t move forward, you’re toast.
Think about driving. You keep your eyes forward. You can glance in the rearview mirror to get information, but you don’t stare at it. You stay focused on the road ahead.
Trading works the same way. You can glance back at a losing trade to understand what happened.
But if you keep staring at the rearview mirror, you’ll miss the next setup. You’ll hesitate on the next entry.
And eventually, you’ll convince yourself it’s safer to just stop trading altogether.
Move on. Take the next trade. Play the next play.
Avoiding “The Death Spiral”
One mistake can turn into two, which can turn into three, which can morph into a death spiral.
When I was playing basketball for the University of New Hampshire, I missed a layup in a crucial game.
I was so mad at myself. I was still in the paint, feeling frustrated, as the rest of my team ran back to defend our basket.
The other team scored.
I turned a two-point mistake into a four-point mistake.
Sound familiar, traders?
You take a $200 loss. Instead of accepting it and moving on, you try to revenge trade immediately to “make it back.”
You’re compounding errors. And that destroys accounts faster than one small loss ever could.
The NBA Method
A buddy of mine who coaches college basketball tells his team, “NBA stands for ‘Next Best Action.’”
What’s the next best action after you make a mistake?
To dust yourself off and try again.
In trading, that means:
- Accepting the loss.
- Reviewing (and being honest about) what happened.
- Getting ready for the next setup.
Not forcing a similarly weak trade to feel better … or avoiding good setups because you’re scared.
Don’t Let 1 Mistake Define You
One of the lies our brains tell us is that mistakes define who we are.
You take a bad trade, and suddenly you’re thinking: “I suck at trading.”
The trade was a failure. That doesn’t make you a failure.
It makes you a trader who took a trade that didn’t work. That’s all of us at one point or another.
Own the mistake. Reflect on it. Learn from it. Let it lead to small adjustments in your approach.
But never let a single loss define your worth.
Mistakes can teach you what you’re missing … if you’re willing to learn from them.
What To Do After A Mistake
For much of my basketball career, I was afraid of making mistakes.
Then one game, I caught a pass coming through the lane…
Instead of my usual hook shot, I went up with two hands over two defenders and dunked it.
That moment set me free. It showed me that my instincts were on point (if I trusted them).
From then on, I played without fear. And my scoring and rebounding went through the roof.
That breakthrough happened because I stopped letting my mistakes control me.
The same thing happens in trading. You keep pushing through. You keep learning. And eventually, something clicks.
But there will be a time when you’re tempted to stop short. To let past pains and failures define you. To give up right before your breakthrough.
Don’t do that.
Mistakes are part of the process.
Learn from them.
Forgive yourself.
And then move forward.
Next best action.
Play the next play.
And speaking of the next big play…
Earnings season kicks off on October 13th.
According to Barron’s, stocks could start making up to 3x bigger moves over the next 6 weeks.
The problem is: Trying to predict earnings results is like betting on red in Roulette.
But what if you could remove the guesswork … while simultaneously targeting BIGGER GAINS during earnings season?
That’s exactly what my colleague Mr. A has been doing in our Earnings Edge service, with remarkable results like:
- Predicting earnings beats and misses with 89% accuracy.*
- Averaging $188 profit PER DAY (and $944 profit per week).*
- Forecasting within $0.25 of SPY’s closing price nearly every day.
- Helped Mr. A grow $3,000 → $32,307 in 52 days (10x).*
- Helped Mr. A grow $1,000 → $7,900 in 34 days (7x).*
… all within the last quarter.
And now, for the first time ever…
We’re Revealing Mr. A’s Breakthrough Earnings Equation … This Wednesday, October 8th at 8 pm ET.
Just in time for earnings season.
I’m excited to see you there.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
