Trading on tilt: how to beat this crafty monster

Picture a situation when trading when you suddenly feel enraged, and your internal dialogue
sounds like this: “I cannot believe it! Well, watch out!” And then your trading style becomes highly
aggressive, and you open one poorly thought-out trade after another.

This situation, when a trader acts in a state of strong emotional agitation and either cannot or
doesn’t want to control their actions, is called tilting.

Note. Tilt is a state of emotional frustration in which a person starts making decisions based on
feelings of aggression instead of observations and knowledge.

Let’s find out why tilts happen and how we can avoid them.
Why do we tilt?

So, what’s going on in our brain when we’re tilting? According to Daniel Goleman, a psychologist,
people react to a stressful situation first on an emotional level and only then turn to rational
thinking. This phenomenon is called amygdala hijack, which refers to the amygdala, the part of
the brain responsible for strong emotions.

Note. Amygdala hijack occurs when strong emotions such as anger, fear, or extreme excitement
take over the thinking part of our brain and make it difficult or impossible to think straight.

Tilt can easily happen to both newbies and experienced traders. For instance, when angry with
the market after a losing streak, the trader may try to get back what they’ve lost. That’s when
they start opening trades chaotically without having a market signal to back it up and eventually
they cannot stop. And that’s exactly when tilt happens.

What can trigger tilting?

We can go on a tilt due to various triggers of a financial or emotional nature:

 1. Losses are the major trigger, especially when they take place after an unexpected price
reversal.
2. A series of missed profit opportunities is another situation that triggers tilting. Traders
lose their temper while trying to get back what they’ve lost and ignore their trading plan.
3. Increased sensitivity may also be a trigger. Just remember that trading requires focus,
a cold head, risk and money management, and regular practice.

Types of tilts and how to know if you’re already on one?

There are 2 main types of trading tilts: obvious and passive.

The signs of an obvious tilt are quite clear:

— you start trading against chart movement

— the amounts of your trades increase without good reason
— the number of trades exceeds your daily norm

If you notice any of these signs in your daily trading — it’s a clear signal to take a break from
trading and unwind.

Passive tilt, on the other hand, is a silent enemy of the trader. It may sneak into your daily trading
unnoticed, and once it’s in, it’s very hard to detect.

Disclaimer. Passive tilt is almost always caused by a loss of confidence or fear of taking risks.

The signs of passive tilt:

— You no longer feel confident or calm when trading

— You open trades in an uncharacteristic manner
— You trade as usual, but your losses start to override your profits significantly
How to avoid tilting?

There is only one way to shield yourself or get to the other side if you are already on a tilt. It is by
controlling yourself and setting boundaries.

1. Decide on your allowed risk limit

What percentage of your trading account balance are you willing to risk per trade? How
many losing trades per day, week, or month are you allowed to make? Stop trading as
soon as you reach that limit.
2. Master self-discipline
Stick to your strategy when opening trades, and test new strategies on the demo account
first. Create a trading schedule and follow it precisely.
3. Keep a trading journal
Aside from describing the actual details of your trades, you can also write down what
emotions you experience when making them. This can help you control your mindset and
notice any destructive emotions that could lead to tilting in a timely manner.
4. Stay focused
Don’t let anything distract you when you’re trading: there should be no TV, phone calls, or
 curious colleagues to interrupt you. Don’t open the trading platform if you are frustrated,
tired, or cannot concentrate.

You’re on a tilt. How to recover?

1. Stop trading
As easy as it may sound, when you’re on a tilt, it’s a difficult thing to do. But in order to recover
from one, you just have to rely on yourself and your willpower.

2. Switch to physical activity

The best remedy for a confused and overly emotional mind is to let your frustration out. Go for a
long walk, do a 5-minute workout, or just keep yourself busy with something. Cook your favorite
meal, do some gardening, or play a computer game (but choose a non-competitive one).

3. Relax your mind

When the most challenging stage of the tilt has blown over, it’s time to get your mind under
control. Do a breathing exercise (you’ll find one below). But remember that all psychological
exercises have a cumulative effect. So if you get into the habit of dedicating 5 minutes of your
day to breathing, in a few weeks, you’ll notice that it’s now much easier to overcome your
emotions.

4. Take a break from trading

The duration of the break is up to you, but we recommend refraining from trading for at least a
couple of days or until you aren’t experiencing any negative emotions at all.

Exercise: countdown breathing

1. Sit somewhere quiet and close your eyes.

2. Focus on counting your breathing, starting at 100, counting down to 1: each inhale is one
count, each exhale is one count.
3. Breathe in 100, breathe out 99, breathe in 98, breathe out 97, breathe in 96, breathe out 95
and so on.

The counting allows you to keep your mind focused, and the challenge of counting backwards
keeps your attention on your mind and body connection.

Share your story: have you ever experienced a trading tilt? How did it happen, and how did you
overcome it? Share your experience with us on Instagram or Facebook, and don’t forget to add
the #psy_binomo hashtag.