So, you had a real bad trade how are you going to handle it?
- Thread starter bat1
- Start date
If "bad trade" is just a losing trade, which happens sometimes and is normal for your trading strategy, then term "bad" is incorrect. No biggie about it, just cost of running the business.
As for "bad trade" in the sense of violation of your own risk management, simply don't do it and you won't have to suffer.
Someone may ask, why being a psychologist I give so primitive recommendation? Because some things in life are really just like that: simply don't try to jump off the skyscraper roof if you want to stay alive, nothing can be added to it IMO.
As for "bad trade" in the sense of violation of your own risk management, simply don't do it and you won't have to suffer.
Someone may ask, why being a psychologist I give so primitive recommendation? Because some things in life are really just like that: simply don't try to jump off the skyscraper roof if you want to stay alive, nothing can be added to it IMO.
Today was up day, but my method when I first made it said to double up contract size after two losing days in a row cause it happens so infrequently, but when I first made this method, I wasn't trading any large size. It altered my way of trading to be sure, actually gave me brain pain, trades I normally take without thinking, I passed on, made sure they were 100% to the rules instead of 90%, waited much longer for price extension before going counter. I noticed all thru the day, simple things like subtracting 3 ticks from a high took longer, I took half as many trades, went to plus one tick faster, much more smaller profits than usual then only to watch they would have gone to full targets on half of them. It was certainly a learning experience for me. I am still down on the week, but only by 12% of total loss, tomorrow I go back to regular size.
My "bad" trades are really just full loss trades as most of my losses are partial cause I will reverse into other way, just cost of doing business.
Hope all reversed on fake breakouts of lows and highs late in the day. That was fun.
My "bad" trades are really just full loss trades as most of my losses are partial cause I will reverse into other way, just cost of doing business.
Hope all reversed on fake breakouts of lows and highs late in the day. That was fun.
Ok. My 1st trade was ranging not in ES, and I decided to add on at bottom, and made a positive trade. However, it was a fast market and I got stopped out on the account I was managing for other traders.
So I saw ES going up, and figured I would make their money back, but just trade their account since I am already at a profit. Get in, and it reverses. I did average in 2 more times on this trade but got stopped out as support broke.
However, did see market reverses up from my stop, so got back in long all 3 contracts and scaled them out. My loss was a little bigger than my profit, but overall positive day.
On a real bad day, I suggest expensive whiskey.
So I saw ES going up, and figured I would make their money back, but just trade their account since I am already at a profit. Get in, and it reverses. I did average in 2 more times on this trade but got stopped out as support broke.
However, did see market reverses up from my stop, so got back in long all 3 contracts and scaled them out. My loss was a little bigger than my profit, but overall positive day.
On a real bad day, I suggest expensive whiskey.
Where is emg or eng, i forget, saying
"90% simply lose. They just lose."
yea, definitely don't use stops. my max pain is 10-points. there is simply way too much noise to use 2 points and justify it.
a bad day is fine, UNLESS it's a big % of your capital.
If you just lost say 25% of your capital, you are probably done.
If you lost 10%, your account is probably too small, and you're probably done.
If you lost 1%, then the books say OK; however, I think you can lose 1-3% and still not sweat it too much.
"90% simply lose. They just lose."
yea, definitely don't use stops. my max pain is 10-points. there is simply way too much noise to use 2 points and justify it.
a bad day is fine, UNLESS it's a big % of your capital.
If you just lost say 25% of your capital, you are probably done.
If you lost 10%, your account is probably too small, and you're probably done.
If you lost 1%, then the books say OK; however, I think you can lose 1-3% and still not sweat it too much.
I had one of those "blowup days" last week going long in a big down move, not using stops, and averaging in just to put the icing on the cake. I found myself waking up the following morning in full-blown panic (not just anxiety) attack at three a.m. saying "wtf did I do today?" It was if there had been a major trauma in my life, such as a death, and the reality took some time to sink in. When it did it hit me like the proverbial ton of bricks, and it was an awful feeling indeed.
Having faced actual life and death situations more times than I care to, I found that my self-talk was critical in order to survive. There is a line that people cross that they cannot come back from, and losing money cannot be the impetus for that decision. So I chose to focus on the good things in life, and really "talked" myself back to sanity over the following days.
One of my favorite sayings, and one that has kept me alive more than once, is "whatever doesn't kill me makes me stronger." Losing money will not kill me, unless I choose to kill myself as a result. Many have made that choice, and left others to clean up their mess. That WILL NOT be my legacy to my family, that I am gone because I lost money. The ego is a very powerful force to be reckoned with indeed.
I heard a veteran who had lost several limbs and an eye speak one time about what he called "FIDO"...Forget It and Drive On. Great advice for traders in my opinion, and absolutely necessary to survive in this game, both mentally and physically. Take the loss, bandage the wound, and learn what needs to be done differently next time.
Live to trade another day.
Having faced actual life and death situations more times than I care to, I found that my self-talk was critical in order to survive. There is a line that people cross that they cannot come back from, and losing money cannot be the impetus for that decision. So I chose to focus on the good things in life, and really "talked" myself back to sanity over the following days.
One of my favorite sayings, and one that has kept me alive more than once, is "whatever doesn't kill me makes me stronger." Losing money will not kill me, unless I choose to kill myself as a result. Many have made that choice, and left others to clean up their mess. That WILL NOT be my legacy to my family, that I am gone because I lost money. The ego is a very powerful force to be reckoned with indeed.
I heard a veteran who had lost several limbs and an eye speak one time about what he called "FIDO"...Forget It and Drive On. Great advice for traders in my opinion, and absolutely necessary to survive in this game, both mentally and physically. Take the loss, bandage the wound, and learn what needs to be done differently next time.
Live to trade another day.
On close of Thursday which I was back to regular size but traded all day long at that size, I got back to a few thousand to the plus for the week. That meant I could either not trade today or greatly reduce contract size, I choose the latter, traded a three lot, LOL. I never want to go into weekend on down side unless I can't help it. Did ok today, tough to concentrate though as most of the week I traded all day session hours and THAT is very tiring.
In recent years, I think biggest three day drawdown been 4% for day trading. Profitable days never larger than losing days, LOL. So have to fight to at least stay even, and good days returns.
Hope all have great weekend.
In recent years, I think biggest three day drawdown been 4% for day trading. Profitable days never larger than losing days, LOL. So have to fight to at least stay even, and good days returns.
Hope all have great weekend.
My losses have been the great motivator to find out what actually has worked, and when, then create a plan to reproduce the winning trades and meditate on them continually.
After that point, losses are actually easier to deal with than wins. Wins are far more stressful for me. It's like being in the hot seat for several days!
After that point, losses are actually easier to deal with than wins. Wins are far more stressful for me. It's like being in the hot seat for several days!
doing work with forx from last 2 years I am not a good trader . Some times I do good ,some times are really bad for trading . Now I try to do analysis first . I do trading with low lots .It brings good results o me . I am now growing my capital.