Learn To Take Losses

Discussion in 'Risk Management' started by ironchef, Mar 18, 2024.

  1. tomi01

    tomi01

    (Being a guy helps when arguing and once I was accused here by one of the guys I was contending with about scalping of having too much machismo.. lol)
     
    #131     Mar 29, 2024
    ironchef likes this.
  2. ironchef

    ironchef

    Even more impressive!
     
    #132     Mar 29, 2024
    tomi01 likes this.
  3. It is a great point and obviously a big hurdle as an American. On the other hand, there is an objective problem that would extend across cultures in that it is hard to take a loss if you have no confidence in what you are doing is going to produce winners.

    My experience is that winning trades solve so much of these trading psychology problems.

    I am currently on a 5 trade losing streak and the last trade would be up right now if I had just held on a little more. It has taken me so long to be on a 5 trade losing streak and actually feel really positive about how little money I have lost. It is not so long ago I would have started questioning what I was doing and I should have been questioning what I was doing because what I was doing was not really working.

    A pro baseball player is good if batting 30% but that is predicated on knowing you can actually hit a 100mph fast ball.

     
    #133     Apr 1, 2024
    Jzwu2017, tomi01 and PPC like this.
  4. newwurldmn

    newwurldmn

    +1
     
    #134     Apr 1, 2024
  5. ironchef

    ironchef

    You are right. This morning after I reset paper account to have instant fill and no time lag in the quotes, TOS results = ~ SSE results. The expectancy is now very similar to live.

    Doesn't mean I am home free, just means I can now focus on learning how to take losses. :finger:

    Thank you and @birdman. :thumbsup:
     
    #135     Apr 1, 2024
    tomi01 and Picaso like this.
  6. ironchef

    ironchef

    Same as my winning % on options. :banghead:
     
    #136     Apr 1, 2024
  7. Picaso

    Picaso

    Yes, but what's your win/loss ratio? (just a rhetorical question)
     
    #137     Apr 1, 2024
  8. ironchef

    ironchef

    R:R ~ 2X to 20X, more 2-5 than 5-20.
     
    #138     Apr 1, 2024
  9. Picaso

    Picaso

    2-5 is like "I was convicted for murder - or grand theft - or tax fraud - or a parking ticket" :p

    About x3 is your breakeven, right?

    Then even if you just score x20 5% of the time, your system would be great (30% 1R losers, 65% breakeven or small winners that cover your expenses, 5% 20R = about 14R net profit every 20 trades or so, or about a 1.7 expectancy). Most people here would kill for a track record like that.

    Don't be so hard on yourself.
     
    #139     Apr 1, 2024
    ironchef likes this.
  10. ironchef

    ironchef

    Thank you for the encouragement.

    Very lumpy returns, feast or famine. :(
     
    #140     Apr 1, 2024