Here's one that is working for me. "Never accept a loss" Accepting loss means it's gone forever. But in reality, it is just gone for now. It's not that I'll make it back, it's just that it is out there somewhere working for me right now, and it will return to me multiplied.
When you think about love, life, time and money, usually money is the only one that is easily replenishable.
I've had some loosing streaks that lasted comple of days/weeks. The best way to break out of them (if you have the power to do so) is to realize that loosing is the part of the game - and without losses it is impossible to win. Think about it this way: You loose on a trade (let's say 1 point on 1000 shares) $1,000. There was something unique in that loss that you understood how a particular type of stock/equity/anything moves under certain situations. 1 year later you are trading 1million shares per position. You see the exact situation as with your loss, and you go the opposit way. Now 1 point on 1,000,000 shares is 1 million bucks! That million would have never happened without your loss. Therefore, try to find mistakes in what you are doing - getting an advantage over them for the next time. Your losses, believe it or not, is an investment - if you look at them in a correct way. As for stopping trading: don't do it. That way you will loose your edge completely. Strike the iron while its hot: Wins and losses are numbers with different signs, all you have to do is reverse the sign - do it while you still trade! Good luck!
what really makes taking losses such a hard thing to do? I think I have it figure out a while ago.. It's the ABSOLUTE amount that is losted that really cause the problem.. it's the amount you lost RELATIVE to your account (and may be your salary) that makes it tough.. I trade two related futures market using a trend-following system Due to the very different liquidity of the markets..I trade 200 contracts in one of the markets ...and the other I trade with about 20 contracts... I have never have a problem taking a loss or any disciplinal problems( taking profits early..not taking trades) with 20 contracts.. I just put in order and forget about it... I don't even care what execution price I got.. The amount loss really doesn't matter to me at all.. but when I have 200 contracts...I just lose it.. I either take my losses too early or too late... or didn't take a signal... I realize that you have to be comfortable with BOTH the size you are trading and the amount that you are PREPARED to lose.. I have no problem with losses around $15k per trade and drawdown of $60k(which I experience last week) any more and it start getting stressful.. this might sound weird but I find that you really need to experience ever higher drawdown and bigger single loss to in order to perfectly execute a mechnical system ... what doesn't kill you really make you stronger... just think about this...If the worst drawdown you experience is 100%(blown out)..would a 40% drawdown really matter at all???
Sort of like accepting that you have to raise your darn leg everytime before you can push on the bicycle pedal again. There must be a way around it. Seems a little silly to worry about it.