Let me clarify .... something I only trade with a very small trading account (on purpose) because I find that it helps me to keep focused on the net points/percentage profits rather then the value of the money. 20% is really hardly anything in real dollar terms so don't get all kooky. If you have something constructive to add then add it. If not then shut up because I know every single one in this room has gone through this issue ... at least I have the courage and humility to ask my peers for advise. That is what this room is supposed to be about REAL traders exchanging ideals and issues !!!
Been there done that. Either: 1. Get up, walk away and go do something entirely different for a few hours -- read the paper, watch TV, take a walk, do something that distracts you -- then come back later near the close of the market -- but give yourself a few hours at least, or 2. Quit for the day Recognize when you are REVENGE trading. I frequently have to tell myself not to revenge trade....
Excuse me but I don't know anyone personally who has lost 20% in one day. If it is no big deal why are you posting in the first place? First thing a trader learns hopefully is to control losses as John Hill said" it is the only thing we CAN control." Get help NOW.
1.5 - 2.5 % average winning day 4-6% a good winning day. Normal losing day 2.5% This is why it gets so darn frustrating because it now takes so long to get back to where the account was. It will take approx. 30 trading days to correct a one day mistake.
% risk is all relative to reward, 20% is not a huge deal if you're used to batting for 10% a trade for example. To say its "unacceptable" under any circumstances is kinda narrow-minded, no? Big losses almost always start out as small ones, it's important not to let prior trades affect whether or not you take your next one. One person mentioned poker -- but an even better game to emulate is that of a good blackjack player. Trading and poker can get me to react emotionally at times, but when I play blackjack I am just a machine -- dealer can get 3 5-card 21's in a row and it doesn't phase me in the slightest, I will still hit on 16 if I have to or split my 8's. Ultimately, this is how I'd like my attitude towards my trading results to be.
sam, i think that this is what you want from your trading. It's comfortable for you to have to ''fight back'' from losses. i think you probably get something out of writing these posts and I wouldn't doubt if you tell these stories to your friends and family. Get control of yourself to get control of your trading. peace uptik
hello samson you stated that .... - I only trade with a very small trading account (on purpose) - so if this is the case ... then perhaps you have another source of income and making or losing 5 , 10 , 20 , 50 % acct in a period of time will not change your lifestyle? if this is the case ... then no big deal ( in the big picture ) now if trading is now your primary source of income then big swings will be troubling , regardless of the amount involved ... oh ... I have been in your situation a few times myself over the years ... turned small losses into big ones :eek:
uptick that was very insightful and truely deserves some deeper thought.... Yes I guess it is true that writing these posts helps me to re-think the situation and is somewhat therapeutic but I do really like to hear other more experienced traders thoughts. Sometimes it's just those little gems of wisdom that can make all the difference.
If your posts in this thread are accurate, then your problem is that you have an occasional tendency to binge. Overeaters tend to binge when they are frustrated or anxious more so than usual. Two things come to mind. First, look back and try to identify the events that may have brought about your binge tendencies in the past. My guess is that it was brought on by more than just taking a "rogue" trade. I would think that your binge was already in motion by that time, which then caused you to take that first ill-conceived trade that then cascaded into a full-out crummy day. If you can identify the precursors (argument with the missus, lack of sleep, not enough roughage in your diet, etc.), then you will be forewarned and prepared for the consequences that follow - the binge. So, first figure out what brings it on. This brings us to step 2. When the identified precursors have been set in motion, be prepared to either take the day off at once, or call it a day after the first inappropriate trade you make. Remind yourself that you are probably one of only a handful of traders who can "kick butt" 98 days out of a hundred. (I wish I had it so bad!) Alternatively, you may wish to seek therapy to overcome your binge tendency rather than to just circumvent it as I have suggested. But if it does not leach into any other part of your life, why bother with the time and expense? If it only happens one day every month or two, I would use that time as a well-earned holiday.