Tilt
The state where, after a run of losses, you are no longer trading by the rules. The only cure is a break.
Tilt — what it is?
Tilt is a state in which decisions are made on emotion rather than by plan. It usually sets in after a run of losses or after one painful trade.
You recognise it by behaviour, not by mood: the time between trades shrinks, size grows, the timeframe drops, the checklist stops being used.
The danger is that from the inside tilt feels like resolve. The person is sure he is acting decisively and correctly, not destructively.
- 1. The loss — an ordinary trade taken by the rules closed in the red
- 2. Frustration — you want the money back right now
- 3. Size grows — the next entry is bigger than usual — "one trade and I'm even"
- 4. Rules gone — entry with no setup, the stop gets moved or removed
- 5. The streak — two or three quick losses in a row, each bigger than the last
- Emergency brake — The rule is written in advance: two losses in a row — the trading day is over
Tilt — how it is built?
The signs are measurable, so the defence has to be mechanical too. Set the limit in advance: how many trades a day and what drawdown mean stopping for today. The decision to stop is not made in the moment.
Tilt — common mistakes
Trying to spot tilt by how you feel.
Carrying on trading to "get the day back into profit".
Thinking tilt only happens to beginners.
Setting a limit and cancelling it the moment it triggers.