Very hard time taking loss:(

Discussion in 'Psychology' started by ksonsinc, Feb 3, 2006.

  1. Well i have been scalping 100 shares to 150 shares and have been doing good but here is the problem i am having a hard time taking losses :(
    When a trade goes again me i see my self losing $10 or $20 i think it will come back or i can average it and it just messes my brain up
    If a trade goes again me how much should i expect to lose $8 $10 $12 $15
     
  2. Taking losses isn't your issue. Its having a winning edge. Thus, there is a higher % that a trade will go against you. It could also be that you are risking a little too much on a single trade than what you can stomach.

    With that kind of odds, even the most disciplined traders would have a hard time taking losses. Trade smaller, develop a winning edge.
     
  3. volente_00

    volente_00

    Have a stop loss in mind before you even enter the trade and then enter it as soon as your are in the trade. Do not place yourself in the position to have to think to take the loss once the trade is on because your emotions will jack with your mind and you will make unclear choices.
     
  4. If you have a plan where you know there will always be losses but bigger and more winners then why be afraid of taking the loss? If you take it then maybe a winner is waiting around the corner :)
     
  5. tomcole

    tomcole

    Its psychological because you want to think you can never be wrong, common problem. Sometimes not every setup will work.

    Keep doing what you're doing and either you'll learn when a trade isnt working or you'll blow out your account.
     
  6. It is kind of like a basketball team being afraid of giving up baskets. The other team is going to score baskets no matter what you do. It is a part of the game so you just accept and focus on the bigger picture. The idea is to have a plan in place so that you out score opponents on a regular basis consistently and thus have a winning record overall. You will lose some games and have some bad shooting nights, but overall you want a nice winning record for net profits.
     
  7. Great replies! Remember that risk is the only thing you can control. If you don´t have so much money so can scare other traders.
     
  8. Well guys i am playing small 100 shares to 50 shares
    i am a disapline trader and i always see that no matter what they is always an oppurnity waiting for me
    but what kind of losses do you,ll keep $5 $10
    I need to get an idea especially all the scalper,s :)
     
  9. volente_00

    volente_00


    Depends on your target, your account size, your risk tolerance etc

    Are you trying to make .05 ? .10 ? .20 or more profit ?
     
  10. My sympathies. No one likes taking a loss, especially when you think you are going to be right in the end.

    You have to have a system where you absolutely exit at a certain point every time, or they will penny you to death and soon you are losing 50 cents instead of 10 cents a share.

    Trick is to get out and then get back in when the trade looks like its going to go your way again.
     
    #10     Feb 3, 2006