Overcoming Losing streak

Let your subconscious mind work on the problem and give your conscious mind a break. When you're stressed out, the old frontal lobe doesn't operate very well. Sometimes the problem can be just be stress.

Then review your winners and losers to spot areas to accentuate (strengths) and eliminate (weaknesses).
 
Hate to say this but in this business there is beginners luck and you had it but its now run out.

A new trader comes in the game fresh and hasn't experienced the pain associated with losses. They can trade in away which is infact quite reckless (trading without an edge) but the market can sometimes be forgiving for many weeks and months, sometimes even years.

Eventually the luck runs out and the pain begins.

No longer can you trade the way you did as a newbie ever again :(

You need to trade in a professional manner, you need a valid method/edge..
 
Take at least a few days off, preferrably a whole week off.

Tough to do, but the only right thing to do if you`re actually experiencing a losing streak.

Take my word on it. :)
 
When you trade based on "gut feeling" from reading the order book it is very easy to get sucked into a losing streak, by the vicious cycle created by the stress of losses which brings way too much of your attention towards loses and too little towards opportunities.
In my case, it helps to take a few days off.
It also helps to move back to trading 1 lot ; so that there's no stress, and one's inner voice can easily say "I don't care about losing $5.30... i'll let the market flow until it proves my trade right or wrong..." Once you take a few winners confidence starts to kick in again and you start thinking of opportunities, not of loses... from there it is pretty easy to scale back to your previous size, and even to take it further up.

Another thing that works for me is reading Mark Douglas' trading in the zone (must have read it over half a dozen times) it helps me get back in the right mind frame for the mental game...
 
Quote from Laissez Faire:

Take at least a few days off, preferrably a whole week off.

Tough to do, but the only right thing to do if you`re actually experiencing a losing streak.

Take my word on it. :)
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Already took today off. Went to desk but practically no trade. I felt much relaxed after seeing the market just like that. Will do the same for tomorrow and then ll start trading with 1 lot.

Quote eusdaiki :

it is very easy to get sucked into a losing streak, by the vicious cycle created by the stress of losses which brings way too much of your attention towards loses and too little towards opportunities.
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Thanks for your comments, it helps :)
 
Quote from Businessman:

Hate to say this but in this business there is beginners luck and you had it but its now run out.

A new trader comes in the game fresh and hasn't experienced the pain associated with losses. They can trade in away which is infact quite reckless (trading without an edge) but the market can sometimes be forgiving for many weeks and months, sometimes even years.

Eventually the luck runs out and the pain begins.

No longer can you trade the way you did as a newbie ever again :(

You need to trade in a professional manner, you need a valid method/edge..
More...

I have seen many traders sitting around me who are making money consistently trading solely on price-feel, for years. Does that mean they are not professional enough, or don't have an edge? I am not sure about the definition of edge. I don't mean any offense to what you said, feels very logical and true. Just want you more to say on this 'coz you are much more experienced in markets and I want to learn. I have 12 hours of screentime everyday and my aim is to capture the small opportunities market offers in spreads and outrights. I base my trades on charts and order-flow.
thanks for the reply :)
 
Quote from 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?
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Sim/slim;
You are doing something very right.
And that something, i wish i had done it more ,when i was learning to trade-''cut back, or stop trading'' when one loses.

But without a profit plan, cutting back simply slows losses, not much help..And without a written profit plan. no wonder ''all you think about is to control losses''.

Trading is much more difficult than it looks;
I am a discretionay trader, but discretion doesnt do much good until one has years of experience, for example 3 years may only contain a bear cycle, next 4 maybe a bull/uptrend. So 1- 3 years expeerience mabe not near enough.................................................

Actually i was thinkng about your post his mourning...

Jack Schwager 3 Top Trading books & Market Makers Edge may help a lot. They helped me learn to trade.Also many traders make plenty of money with low %% hit rates;
but i prefer hi %% swing/position trades myself.One[1] loss almost indicates a trend change.I can daytrade,55 or 58 or 60 minute charts but seldom do.

For years, even though i always traded with discretion, i had a 25line/1 page which changed into 50 line 2 page check list including ... 200 dma/check , 50dma price/check, 50 dma volume/check, Parabolic stop & reverse/check......................................................................................................................................................................................................
As far as gut feel or price feel;
lot more to it that that, even though i dont need to check the check list, i still use the principles.:cool:
 
Quote from simmygarg:

I have seen many traders sitting around me who are making money consistently trading solely on price-feel, for years. Does that mean they are not professional enough, or don't have an edge? I am not sure about the definition of edge.

I don't mean any offense to what you said, feels very logical and true. Just want you more to say on this 'coz you are much more experienced in markets and I want to learn. I have 12 hours of screentime everyday and my aim is to capture the small opportunities market offers in spreads and outrights. I base my trades on charts and order-flow.
thanks for the reply :)
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Well [a]Market Makers Edge[book ] defines it best/most practical., but i found his multi month charts much better than his daytrade info.
Since you are wanting to learn, the highest probability is its not just ''price feel''

Its most likely[ b]price analysis[maybe'' feel ''maybe not'' feel']
b] includes volume analysis ,if they dont include vol, i wouldnt call them pro, they maybe pro anyway,LOL.Tek analysis is defined as study of price & volume.

c]i wouldnt call them pro if they are not using money management.They wont last without money management.
 
stop trading one week, that will automatically put you at no losing position.

i.e. the losing streak is stopped.

then focus on one strategy, do one trade a day.

the most efficent one is buy dip, then sell with little profit.


no matter what kind of sessions, either strong down trend day or up day or range band day, patient to wait for the dip (under EMA in a down trend, like oversold ),

or buy on the ema in a uptrend.

the odd is very high. do not forget to get profit quickly, do not sit there and wait for home run. just 100bucks even 10bucks, you will feel very different since you are winning.

most people in a losing streak is trying to make killing to recoup lump sum loss, that either stopped you from trading (you need huge risk to do that, you will freeze, always wat a perfect trade)or put you in a gambler situation and you stumble into a hole you never be able to climb out of .

when i experienced losing streak, I often try this and try that and try to figure out what is wrong, like switch strategy to another one, and back and forth, late found they just don't work when I apply them, when I do not apply them, they work, .......

acutally I found that does not work. I just need stick to one strategy, do not try to change.

if you like to pick bottom, stick to it. if you like to ride trend, stick to it........ all methods are sometimes great but sometimes aweful.

if you switch back and forth, your mind will get confused, so will easily create mess. when you should ride trend, you counter-trend (your last trade to ride trend failed), when you should counter trend, you follow trend.

what I learned is: never change my strategy, that is why my strategy is just buy OTM options. if I see the underlying go up trend, I buy call. if i see the underlying go down trend, I buy put.

I just trade the up direction. I do not try to confuse myself about direction.
 
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