(A 'big loss' means different things to different people.) Being too composed, especially after a string of big losses is a bad sign. There is an obvious problem yet the trader is totally unconcerned. I don't think this is common however.
Beginner level and maybe advanced beginners think like the posts made here. The theme is inductive reasoning as how strategies and trading is done by this type of person. basically, they use induction continually as they "build" what they have from a small central core of and induced idea. They take this guess of their's and add more and more layers to it from "experience" also based on "induction". As has been explained in book after book and example's of organizations and individuals not in the "wizards" books, building inductively finally leads to the end of the line. Before this final moment, there are times when people, irrationally deduce that they need more "dicipline", financial management to "spread" risk around and sophisitcated betting strategies and stop protection. Putting in limit orders and then seeing a cascading market finnally makes the point that stops are not the cure forinductive based trading. Anyone who is building on an inductively reason model better have composure all the time. Composure is just another name for being a dunce.
-There's no reason to lose double digits. If any trader has "huge" losses, STOP TRADING and learn risk management. I trade e-minis and never risk more than 4 or 5 ticks. - cris ... if you can risk only a few ticks in this kind of market you will become the worlds greatest trader just do not let it go to your head good luck health and sanity in the months ahead I hope someone finds the plug in the bathtub which is derivatives and leverage before we all sink for good
yeah but the only way to have spectacular returns is to be willing to take big losses.(like 15% of your networth in a day) thats not easy to do
I didn't say it was fun. I just said you have to deal with it and learn how to try to avoid getting yourself involved in that much risk going forward.
One of my rules is never risk more than 10% of your account in one trade. 10 % of your net worth is steep and will lead to trouble. Back to the topic just play the game as when emotions come in play everything changes. After work you should look act the same as if you are up or down on the day. It's work and we will have good days and bad ones. Learning to deal with them is the tricky part.
Some people (not necessarily you) think they can day trade with that rule. So they put on multiple trades in a single day. This can't be good.
'How composed are you when you took big loss? ' if you're asking did my voice break while i was screaming, no