What according to you is an effective way to deal with losses when you have a bad week/month ?

Raheel Shaikh

Raheel Shaikh

Trading is one business that takes a lot more discipline and emotional strength than anything else
after gaining some experience in this industry you realize losses are inevitable,
then comes the real deal on how you handle them and keep moving consistently.

Series of losses can create self doubts, stress and causes emotions to take the wheel
and this is just a part of the journey...
How you overcome that and stay consistent defines your edge in the market.
that being said, what do you feel is the best way to deal and overcomes such days ?
 
Raheel Shaikh said:
Trading is one business that takes a lot more discipline and emotional strength than anything else
after gaining some experience in this industry you realize losses are inevitable,
then comes the real deal on how you handle them and keep moving consistently.

Series of losses can create self doubts, stress and causes emotions to take the wheel
and this is just a part of the journey...
How you overcome that and stay consistent defines your edge in the market.
that being said, what do you feel is the best way to deal and overcomes such days ?
More...
%%
RESEARCH, charts or price data[edit\ the more data the better]
Track + trade/invest in the benchmark, for example SPY...................................................................
 
Raheel Shaikh said:
what do you feel is the best way to deal and overcomes such days ?
More...

Focus on trailing 10/20/60 day cumulative results rather today's results.

"I lost $3,000 today" feels a lot more painful than "I lost $3,000 today but I am still up $4,000 over the last 20 trading days." Or if I have a bad month, I may look at the last 6 months, and say "this month was bad, but 4 of my last 6 months were profitable."

I'm sure the feeling is similar for a major league batter who is 0 for his last 16 at bats, yet still has a .295 batting average for the season.
 
I think it depends on the context really. If you started something, fooled around, half assed, then failed...you should feel bad and put it on yourself. To Make losing painful is healthy IMO. On the other hand, if you did everything right, planted a good crop, tended to it appropriately, and a few days before harvest a hail storm destroys it all...you deserve a day or two of heavy drinking and self pity.

To answer your OP: Resolve + Gratitude

Resolve = ill do it or die trying, never quit attitude. It is a good way to overcome doubt when you know you want it and you know that you wont quit. Reflect -> improve -> try again. repeat process one more time forever.

Gratitude is a direct counter to despair. To overcome thoughts like: I don't have this, im not good enough at that, I suck, why didn't I do that etc...you have to focus on the positive pole of the scale: I am thankful that I have the ability to learn and improve myself. I have another day alive in a country that allows me to pursue my own interests, I have a family that loves me and wants me to succeed, etc...

Starting each day with a gratitude journal is one of the most effective things i have ever done in terms of improving my attitude and outlook each day. I takes discipline, nobody wants to do it, but i think it is worth it.

Finally A little bonus tip from someone who has suffered a great deal from trading failures, my main man Les Brown taught me that its possible. It might not be likely, but it is possible to improve your skill, get better, stronger, wiser, etc...It is reassuring to ask the question that if others have done it, then why can't I? It is possible to succeed if you are willing to change...its all about change.
 
I'm sure nobody wants to hear this... reasons you have a bad period.

1. You don't know what the Hell you're doing.

2. You "traded sloppy"... without discipline... all entirely your own fault. (I did some of this myself years ago.)

3. You traded with the wrong "bias". Your bias needs to be in-tune with the market's bias. No excuses. (Made this mistake, too.)

Sorry if I hurt anyone's feelings.

KISS, baby.

:)
 
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SteveM said:
Focus on trailing 10/20/60 day cumulative results rather today's results.

"I lost $3,000 today" feels a lot more painful than "I lost $3,000 today but I am still up $4,000 over the last 20 trading days." Or if I have a bad month, I may look at the last 6 months, and say "this month was bad, but 4 of my last 6 months were profitable."

I'm sure the feeling is similar for a major league batter who is 0 for his last 16 at bats, yet still has a .295 batting average for the season.
More...
%%
Good/very good.
IF up $4,000 past 20 days+ lost $3,000 in one day\sounds like he is risking way to much:caution::caution:
 
There are losses and there are losses. Its vital to identify what the losses are.

Losses that arise from the correct operation of a profitable strategy are just like the utility bills that come in. Just check you adhered to the rules of the strategy.

Losses from unexpected events indicate either an imperfect or deteriorating strategy, or excessive risk.
 
'What according to you is an effective way to deal with losses when you have a bad week/month ?"

No trader is Supernatural or divine.
That being said, being wrong is a normal, expected, part of this market game from time-to-time.

You have to look at the much wider, greater, picture of trading.
As long as your average % gain trades exceed your average % loss trades...you will essentially get rich.
Don't let individual trades, or days, bother you too much.

Or, someone could just possibly be a Sh*tty trader...and they need to admit that to themselves -- and Reevaluate their process, understanding, tactics and approach.
 
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