What do you do when you take a big hit in the markets?

Discussion in 'Psychology' started by MrDinky, Jan 31, 2003.

  1. This statement is a piece of crap. Never blame someone else for your mistakes. Part of becoming a winner is excepting the responsibility of your mistakes and learning from them.

    If you keep a journal, analyze it; you might find the problem there. Also, as mentioned, take a few days off and trade with smaller size when you come back. If your still not profitable, paper trade for a while till you are.
     
    #11     Feb 1, 2003
  2. What do you do when you take a big hit in the markets?


    I don't take big hits anymore. I stopped hoping and started using stops. I use stops and honor them. Individual trade stops, daily loss stops and weekly loss stops (if need be).
     
    #12     Feb 1, 2003
  3. ditto for me too... however, from time to time, the 'evil me' sticks his head out of the cage, where I put him in, to whisper in my ear and move my hands : " ...Psst! Doji ! ... Cancel the stp loss, don't get fool by a little a jiggle!... sssss...." And after I take a big loss, I could hear him laughing out loud in his cage ! :D

    Cheers!! :p
     
    #13     Feb 1, 2003
  4. I go and workout. If that doesn't seem to relieve the stress.....I kick the dog.
     
    #14     Feb 1, 2003
  5. gertsman

    gertsman

    Ah the reason why traders can't make the big bucks. Handling the big losses is a tough thing, but you have to overcome it. Never lose sight of the bigger picture. It is not the daily p&l that matters but the year end. Last January I had my first losing month, who am I kidding I had my head handed to me. It took me 3 month to get my groove back. That butt kicking made a better trader. Once you lose confidence, you are done.

    Gertsman
     
    #15     Feb 1, 2003
  6. nitro

    nitro

    Get up the next day and get back to work.

    nitro
     
    #16     Feb 1, 2003
  7. "Ah the reason why traders can't make the big bucks..."


    Gertsman,

    I have to disagree. As you are well aware, it isn't necessary to take huge risks. It's only important to be consistent. It's a cliche day for me, so I'll say, "There's more than one way to skin a cat,"
    but I'm afraid some of the Southeast Asian traders might take me literally.

    Although I happen to know your "first losing month" was a doozy,
    you did recover nicely (perhaps an understatement).

    Let's review unmarried young Gertsman's vehicle purchases in '02:

    BMW M3
    Cadillac Escalade (because, "it's too cold here in the winter to drive the Beemer").

    I've heard you say, and I know you believe, "I LOVE losing money." I just think this strategy is going to eventually end badly, because of the ever increasing position sizes. I hope not, because I really admire your cockiness.
     
    #17     Feb 2, 2003
  8. well, i know where you are coming from. i was on my way to having my first 20K month (and i took the first week of Jan off) until friday the 31st i lost 8K. I lost 9K in one position, made 2K trading but after costs i lost 8 K. It was a crushing blow to my pride and my goals- i have never lost even close to that much before and it made me realize that even though i had been doing really well up until that point, the reason i took that huge loss is becuase i didn't honor my stop loss (-1000) and i didn't trade my plan. also, I had a 4000 share position in a stock i never traded before. big mistake, I know i can make it back, but the loss, as badly as it hurt me, was an education to stick to my stops, my plan and my discipline. If you lose a lot of money, you damn well better learn from it and never let it happen again- I know I sure won't lose over 3K in a day again- that is my new limit to quit trading for the day.
     
    #18     Feb 2, 2003
  9. I hope it is when my P+L goes slightly neg for the day

    that is when I should stop trading or go really small again ...

    so hard to do though ...

    :(
     
    #19     Feb 2, 2003
  10. qdz2

    qdz2

    This one is a casino manager.

    :p

     
    #20     Feb 2, 2003