How do you handle big draw-downs the next day?

Quote from Bolimomo:

How do you get back to a horse once you fell off from it?

Let's say you are making a living trading and on average take in $1000 a day fairly consistently. Then on some of these days you have sudden draw downs. May be a loss of $4000 for the day. It seems that on that day, no matter what you do you just can't do it right. Everything you touch turned into crap instead of gold. So you swallow it hard and take the losses home.

The following trading day, what do you do?
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I dont understand this situation you described. Why did everything you touch turn to crap? If you can't answer that then how do you expect to pick 1,2, or 3?

Why are these drawdowns such a mystery? You should be able to look over your trades and see what is wrong or right. :confused:
 
Quote from KingZardoz:

Why are these drawdowns such a mystery? You should be able to look over your trades and see what is wrong or right. :confused:
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See OP, we are trying to help you.

Start by keeping a diary.
 
Quote from snowhite:

get a hot one of the corner and take 'er home.
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I agree 100% :D
Coke and Hookers after a losing day.
Take the week off somewhere in Mexico and wash it down with some Tequila!
 
Quote from MandelbrotSet:

See OP, we are trying to help you.

Start by keeping a diary.
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Some people don't understand what Ed Seykota meant by saying "everyone gets what they want out of the markets "

In cases like that is is hard to help someone :)
 
I posted something earlier that you need to be like a closer in baseball. If you had your stuff, and they hit a 3 run homer off you in the 9th,. just come back with the same stuff.. of course we are assuming your stuff is good to begin with. trading is 80% psychology, maybe more.. DOnt let it get in your head if you really believe you have something
 
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