The advice about figuring out why and fixing it is good advice. But you might find an intermediate step helps. Try taking a 30 minute walk to calm down and break your bad set then come back and go thru your premarket routines again to get yourself setup. The retrade the initial period in your mind to "fix" it. Then for a couple of weeks just paper trade the rest of the day. This will prove that it could work and build confidence in the process (good belief). Once you are recovering properly by this or a similar routine reintroduce proper trading ... maybe gradually by taking one paper trade then the rest cash if you perform the first ok (ie stick to your rules and are in phase with the market). I was initially plagued by bad leads to worse days but gradually managed to overcome the pattern I got myself in.
If you want to be a successful trader you need to learn how to make money back, it's very important. As for thoughts, what I do when I am down in the morning is not size down like most people, but rather keep my size the same or size up BUT only take high probability trades. I become really selective in my trades and it usually works because I'll have a success rate of like 8 out of 10 trades to get back into the game. Then I trade like I normally would. But at the end of the day you are going to have to find out what works for you. To be a success in this business you have to have good self evaluation skills of yourself. Because everyone has their own demons to over come.
Great advice too. If you have "better setups" or some trades that really are great win raters then limiting yourself to them after a losing streak will pick you up again.
I dont know how long you have been trading but do you have any idea what your average winning day is? I think it is important to limit your losing days to around your average winning day. Big losing days will cause a lot of emotional damage that is hard to repair.
I think it's an awful rule. If you are making stupid mistakes, then figure out a way to eliminate them. It is more than likley that you get started on a cycle of losing and it perpetuates itself. Which means you are focused on your P&L and not making good trades. Get yourself to focus on making good trades and you should be able to get yourself out of the red. Nearly any bad day can be fixed with just one or two trades....remember that. It is a good idea to have a maximum stop. A point at which you screwed things up so bad that you will just close out of everything. This will keep you from turning a bad day into a career ending day.
another issue you have to consider is the fact how you maintain/record your trades, alot people underestimate the power of keeping a daily journal. These is highly associated with discipline.
Losing is part of the game. How you react to it is the other part. I think it makes no sense teaching people to become emotionless when you trade. What are we, even the beast have emotions! the trick I think is to try and get over it. It's like the bully at school, unless you stand your ground and stop running everytime he gets you, you are only doing yourself a disfavour. Get back to the bully (market), take another trade, reduce size, approach from a different angle, but keep on trying. from some1 who started with $10000, lost $7000 in 2 months and now back at $ 8000 now! But none has bragging rights in this business. the markets will humble you. Wish you luck, trader
Losing days, pal, mean that you should quit or go back to the drawing board. Best rule for the ill-prepared: don't trade.