Many people have come across titling meaning that is generally connected with poker. However, it can also refer to trading and the financial market. What’s more, tilt can be even more threatening and destructive for both novice and professional players if one is unable to keep it under control.
So, what is the meaning of tilt? It generally occurs when an individual loses control over his or her trading strategy, resulting in significant losses. Tilt meaning comes with specific problems as well as ways to prevent them or recover if they have taken place.
In this article, we are going to dive deep into details of this specific phenomenon that has already harmed millions of traders around the globe despite their background, knowledge, and skills.
The term mainly refers to the situation when a trader makes an action under the influence of strong emotions or psychological agitation. In such a situation, people generally find themselves in a grip of emotions instead of proper decision-making. The phenomenon is also known as the active type of tilt.
At the same time, there is a passive type when a trader is afraid of making a step forward. In other words, emotions do not let an individual enter the market or even execute a trade. It all leads to a lack of control over actions, which causes catastrophic consequences and enormous losses.
To understand tilting meaning, you may remember the most recent quarrel with the one you love. It causes the feeling of despair and sometimes even rage, which inevitably results in aggressive trading and the inability to manage risks properly.
Tilt can result in different factors. Besides, it may even take place after a series of successful trades. On the other hand, it may arise unexpectedly causing two major types of problems or side effects:
Note: the bigger loss you get, the stronger tilting may occur.
Tilting can be launched by various triggers that can be either of financial or emotional nature depending on the type of asset you trade as well as the strategy you utilize:
Increased traders’ sensitivity may also be a trigger. Just remember that trading is not for everyone or at least requires proper education delivered through trading webinars and seminars as well as practicing.
Steps to recover or prevent tilt depend on if you have ever experienced such a situation or not. The only way to avoid catastrophic consequences is to keep your emotions under control and stick to the trading strategy whatever happens. In reality, the task is quite challenging. You need to work out a powerful blocking mechanism. A good idea is to take short breaks in case of long trading sessions. Physical and breathing exercises, guided meditation, and some other holistic behavioral modalities may help.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.