Hi all, Quite often when I get nailed in a squeeze, or have a really reliable setup that goes against me, I get all pissed off and it takes me about 5minutes before I'm ready to trade again. And quite often, even if I am ready to trade again 5 minutes later, and everything else has been going well after the blowup (including subsequent trades) I still think back to that one trade, and although my system is fine and there's no need to change it, it becomes a "once bitten, twice shy" routine where I am too afraid of getting stepped on again and don't take similar good setups for a week or two until the shock of that one meltdown has worn off. I'm wondering if anyone has any little tricks they use to re-assure themselves that their system is fine and that it's perfectly fine to get slammed every now and then in a trade. **I don't trade a mechanical system. I'm an old school tape/support/resistance aka "price action" trader. Thanks in advance, -mr. bungle
Over trading = "oh shit, I got smoked...I went long and it went down on me..let me double sell and go short...uh oh, that was the bottom...let me double buy now"
Sometimes it takes a half an hour for me to stop swearing. I stomp around cursing everything under the sun but if I feel I am too pissed off, I go for a walk outside and get fresh air.
Not sure if you mean you take a big hit or just have a losing trade. No system, mechanical, intuitive or otherwise is 100% successful so losses are obviously a big part of the game. I've learned to just accept a losing trade with as little emotion as possible. Similarly, I try not to get too excited over a winning trade. In both scenarios I think it's most desirable to minimize any overt emotion and keep focused on the market or next trade.
The best thing is go thru neutral, then sell some more. I try not to think about the worst thing...too many of those to keep track. nitro
He asked what is the worst thing you do, not what you're supposed to do. Although a system trader, I say about fifty f*cks followed by a motherf***ing c***s****er. But I brought some hand weights into the room today: a perfect outlet so far! PTR
I jump out the window. Ever since I saw that E*Trade commercial I get the urge. I'm usually mad when I don't have money coming out the wazoo.
My bad -- what I'm really after is how do you cope and get back into the groove after an unexpected wallop. As time goes by, I get more confident in my systems so that the little accidents don't bother me too much, so the wallops bother me less and less, but what I'd really appreciate is if someone could share a trick or routine that they use to accept the loss and quickly get back to business. The speed issue is what I need help with. If I get whacked hard, it takes me 5 minutes of raving or doing whatever I need to vent, and this is too long...sometimes a good wallop becomes priceless in the amount of information you gleam from the process of getting smacked... Someone said that part of it is not letting the wins get you too excited, and maybe I need to work on that a little more...
If you read my original you'd have seen I answered the question he posed ... I accept it and don't get all worked up. Most good traders I know realize losing trades are part of trading. As far as I know cussing up a storm hasn't yet recouped any of the losses people incur.