How do you get over a big losing day?

Discussion in 'Psychology' started by jinxu, Aug 12, 2010.

  1. jinxu


    Simple question.

    How do you get over a big losing day?
  2. elomich


    It depends. If it was a losing day but I followed my plan and didn't trade in a stupid manner, then I realize that it is an inevitable part of the game.

    However if I didn't follow my plan and did trade in a stupid manner then I normally go through a short period of self-loathing, cool down, and resolve not to make the same mistakes again.

    I think the worst way to handle losing periods are:
    -Excessive anger; I suppose a little is only natural for anyone but extremely good traders
    -Drugs, booze, etc...
    -Stubbornness, saying the market was wrong
  3. How big a losing day?

    If it's over 10% of your account (barring some unforeseen disaster), then you're just gambling and have no business "trading" or being in the market.
  4. The OP has a whopping $700 account rolled into maybe $2000 in just days with no losing days.

    10% of $2000 is only $200.
  5. Mav88


    try taking it out on others
  6. Bolimono, I think you missed his last post on the P&L thread:

    Also I think you may have missed that he already blew an account in July.

    Matcha and others, including myself, have tried to warn him that if he keeps averaging down he's going to blow up, but he just won't listen.
  7. jinxu


    Blown up is when my account goes down to $500 in which I would not be able to trade. Didn't happened, so I haven't blown up yet. There's still plenty of trading days left in the year.
  8. Simple: you take a day off to unwind, reflect, learn from your losing day AND you take measures so that it will not happen again. A few suggestions:

    1) Never average down. Unless you're Ammo. You're not Ammo.

    2) Trade a reasonable number of contracts for your capital.

    [The margin requirement is for NQ is 3,500. That's reasonable. If you're daytrading and using relatively tight stops 50% intraday margin (1,750 per contract) is reasonable. If you trade a car per 1,500 that's kind of reasonable. Trading with 500 or so intraday margin per car is not reasonable. Unless you're an highly experienced and successful with a proven track record, have exquisite risk-management skills and a bank account with enough money for the next two years. You may be a promising young trader, but you're not there yet. You're living from paycheck to paycheck. What you're doing is insane.]

    3) Set a daily loss limit at which you will cut size in half. Set another daily loss limit at which you will stop trading for the day. Set both limits at dollar amounts that would annoy you but not upset you.

    Only a dick would take pleasure in your losses.

    Only a dick would tell you to carry on with what you're doing.

    Good trading to you.
  9. Just sleep well, and hope the bright future

  10. By waking up and realizing it was just a dream. :D
    #10     Aug 12, 2010