Today i lost -$4000, have been consistent for past weeks, but daily intake only few hundred, but total profit only to be wiped out by 1 day, which is today So sick and tired of these rubbish But i know i break my rules today, which resulted in my loss, but i have glued to my rules for past weeks, it only takes 1 day to destroy what i built...
Your thread draws attention to the conumdrum that most beginner / intermediate level traders face ... that of believing that trading is all about the: Entry and Exit Signals It is not, it is all about: Money and Risk Management Making money is just a side effect of a trade that goes your way, and the money it makes/(losses) is added/(subtracted) to/(from) your bottom-line. As you increase your account equity you can quite naturally scale-up in size, but only then. *** You actually are at a very good place ... lets see if you can take it to its logical conclusion ... in the meantime, remember, your stops are your friend, not the trend.
I am sorry about your loss. IHMO, the best way to build a consistent mindset is to build a solid and consistent routine.
yes, i have go back to my rules again, but the feeling of having to build my profit bit by bit all over again sucks, it is something like, a storm comes by and destroy everything, and left me in a state of loss, have to pick up the pieces, slowly and painfully
You paid 4K to learn the most valuable lesson that there is to be learned in trading. Most of us have spent much more than that to learn the lesson. So get over it, put a smile on your face... ...and move on.
You didn't say how you lost the trade but I have a hunch you traded against your usual setup and lost. One of the manners to maintain the same mindset is that you have to expect to make the same amount more or less everyday; a small loss should also be counted in the day's totals. When you want to take on bigger risks then things no longer the same and you experience some wild mood swings. I'm not sure it's your situation but this is how I like to maintain my attitude on a daily basis.
Account equity goes up and down. Get used to it but don't linger. Just stick to your plan. If the $4k looser hurts too much, take a few days off. Tomorrow is another day. What helps me is that I always take profits out of the account at the end of the week. 30% of every daily profit. The rest is to pay for the loosers. Over several years, the account has become self-sustaining. It all is part of the routine for me, the weekly transfers are my income. The actual account is the trading horse. Good luck.
I have been there before... alot. Just think of every loss as a learning lesson(tuition for the school of trading). There is usually something you did wrong when you lose. Think that there will always be another trade and this trade won't be your last. THis would be just one of thousands or millions trades in you trading career.
I know exactly what you mean. I can trade pretty consistent for many days or weeks and then *BOOM* one day's loss wipes out a big chunk of my former profits. When I then review the past weeks, I usually see that all comes down to: cutting the winners a little bit too early and on the one bad day I don't stick to the rules and let my losses run. Discipline...!! It's hard to see that ONE day without discipline can erase dozens of days with discipline. I don't have a wonder medicine but using a trading platform which allows you to define an uneditable hard stop is good. The point with setting goals is also a step into the right direction. The blog of Chris Dunn has some good points: http://chrisdunn.typepad.com/blog/2008/10/the-power-of-in.html On bad days I usually overtrade. When you start with a loss, relax and wait for the best moments in which the odds are strongly in your favor.