Overcoming Losing streak

Discussion in 'Trading' started by simmygarg, May 2, 2012.

  1. simmygarg


    I am currently having a bad losing streak. It all started last month when I took a big loss in one trade. After that I lost on almost every day. Not big, but lost consistently and it resulted in big losing weeks. I tried to control the losses by reducing clip size but looks like that is not working too. Every time I put on a trade, it goes against and I have to book small loss. If it goes in favour, I am not able to take profits properly. My confidence has really hit and when a day starts red, I end up in red. I rarely think about profits and all I could think is how to control losses.

    I am in a prop trading firm, trading sugar. No particular system or method but daily discretionary trading. I know losses are part of this business but when every passing day it bleeds, it looks more and more difficult. I never had more than 2 straight weeks lose, but this time I had 5 consecutive losing weeks.

    I guess I need some encouraging words from few experienced traders here to start afresh. How do you people handle losing streaks and regain the lost confidence?
  2. I would suggest you focus on adressing the above. IMO, you need a system or method.

    [But perhaps I have interpreted wrongly what you wrote above? I hope so...]
  3. AMEN!

    Do NOT place another trade until you figure out what your edge is... right now you have none.

    Do not discount "controlling losses"... that should be your number one priority. Once you figure out where your edge is and the strategies that have a high probability of success...the profits will follow.
  4. Whats so hot about trading sugar? What is the symbol, I would like to look into this market...

    if you need any help - PM me, I have some secrets to share.
  5. SB the sucker been in a downtrend last month, maybe this has to do with your trading, looks like it was up and then side ways before that. So your system is having trouble with mostly downwards action. Try to adjust, or average in, looks like the market never tanks more then a certain amount. Ascertain the average daily range, and extreme daily ranges, space the averaging out to match these ranges so that you dont average in too soon which will screw you over! Good Luck!

  6. Take some time off. Clear your head. Look at past trades and see where you went wrong.

    For me, I like to try to book some quick profits in a cold streak. Cut your size. You need to decide if it's just unfavorable market action or if your trading is off somehow.

  7. 5 weeks? :eek:

    stop trading sugar.
  8. simmygarg


    Thanks for the above comments. I agree I have to re-look a plan and stick to my rules. Things actually worsened after I panicked from the losses and couldn't execute the trades properly. A little wait here, a little lag there, combined with the fear lead to more risky trades. I will analyse each and every trade now and make sure I have properly planned them beforehand.

    @ Trading time-

    Yes, sugar has been in a downtrend lately. Actually, what has happened in the last month is the market looks changed. Volatility and range has been reduced significantly and there are less momentum trades available. Earlier, I focused mainly on momentum trades based on charts and I tried to capture few big moves a day. Now, market is more or less range bound with a tilt. Plus, since it's making new lows, the bid size orders are heavy ( compared to the average bid size ) and though the market eats them and falls but it takes time. This created a problem for me when I can see the weakness and want to go short, but seeing the depth and the order flow of market, it looks risky and all I could do is to go long at supports.Trading has been really one sided in that sense. I think I have to adjust and trade both sides with equal effort with no bias.
  9. simmygarg


    No, I can't :). I am a prop trader so this is all I got. More products (softs) are available only until you are consistently profitable in your core product. And I love this market.
  10. simmygarg


    Thanks for the reply. I guess it's both the changed market conditions and my offbeat trading.
    #10     May 3, 2012