How do you forgive yourself for trading mistakes?

The mistake is made, the money is gone — the question is what you do with the self-criticism. Endless punishment doesn't prevent the next mistake; honest review does.

How do you forgive yourself for trading mistakes? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

What helps you move on?

  • how you review without self-flagellation
  • the self-talk that works for you
  • how long a mistake used to haunt you versus now
How do you forgive yourself for trading mistakes? — risk-reward diagram
A risk-reward ratio of 1 to 2

The journal guide turns mistakes into data, which defuses them.

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