How do you deal with losses?

the only way to deal with losses is to see them as a business expense and a part of your probabilities playing out.

When you accept these two facts you never take them personally

 

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OP,

I need to clarify my last comment "It is"

I don't know you well enough to be making a blanket statement like that

I do know getting over... and accepting the loser aspect of this business - is an important hurtle..., and a major milestone toward consistent trading

I also know many hurtles exist - and continue to pop up over the course of a career


So even though it necessary to become comfortable with losing trades - also realize every day trading there exists potential for other / more hurtles

It the nature of our business..., and uncertainty


Successful Journey Sir

RN

 

I take my losses. I set my stop- loss at the time of trade entry and either my indicator package stops me out or that original stop-loss level takes me out.

The good part about this business is that if you are adept and eager to take your loss and move on to the next trade - you are going to be profitable if you have a system even slightly better than a coin flip.

Sounds weird to newbies, but I am always booking a loss. And I usually carry a few to many positions simultaneously. Losses are an important part of trading to master. If you require certainty, trading is NOT the business for you.

 

I can handle the small losses no problem, BUT the uncanny thing is once I have a consistent streak 10 or more days without a loss. I will then increase position size and then BANG it happens, I undo the previous consistent streak in no more than 2-3 days.
NOW THAT I have trouble handling.
After fully documenting the mistakes and a few expletives, I go back on demo for a week to get my bearings again.
Very frustrating and I think it comes back to money management, if I trade small I very rarely loose. However my goal is to trade size AND be consistent. I will say this I'm only learning big lessons when I trade big and fail. I have 7 years invested, mainly index trading .
No doubt one day I will achieve my goals but some times you don't know exactly where your going wrong because your by yourself.

 

How do I handle the losses???

It's very simple...I just start reading MANY of the posts on ET and realize... “Wow, it could be MUCH WORSE”...and then I feel immediately betta!

But I must admit...I do get that “inspiration feel” reading Handle123-Redneck-fortydraws-& Marketsurfer’s comments...they all seem to speak from the Heart

I just pray that Caitlyn Jenner & 'her' step-daughter- with the HUGE ass Kim- doesn’t come to Bulgaria...

 

Get serious ! why post crap on a good site

 

Thanks for the clarification. The advice is much appreciated.

 

Years ago I used to trade a method that had a very high win rate, partially because it was a great method, and partially because it had an asymetric reward to risk ratio with stops larger than targets. The occassional loss really used to trouble me, and consequentially I struggled to trade the method profitably.

These days I trade a method with a far lower win rate, losses are far more frequent, and I find them far easier to handle.

The whole idea of experiencing long streaks of consecutive gains is totally alien to me, I'm probably making new equity highs less than 20% of the time. The day to day reality for me is that I'm either losing money, or recovering from previous drawdowns, and I have to say, thats been the reality for the very few profitable traders that Ive been aquainted with over the last decade or so.

If your method really does have a high enough win rate to achieve these kinds of streaks, the obvious solution is not to drastically increase position size !

 

The single best way to take a loss is quickly. Before it becomes a drama.

 

Few years ago I had a very big problem with dealing with losses. But I have found a solution. In my opinion the best way is saying (for example in your mind) something positive after taking a loss but before you think or feel anything about it. What should say? I suggest some positve interpretation of your last loss. Yes, you lost money. But it was necessary to make more money future. So you can say "I have made another step to make more money in future". Of course it will not work immedietly but you will disturb pattern loss = pain. After some time of practice taking a loss will be something OK for you.