What do you do after a losing trade?

[enzio23]

Just don't lose your mind

 

[clockwork71]

Some along the lines of this:

 

[Trader Curt]

A losing trade is a losing trade. But one trade does mean your trading method is terrible. Losing trades can occur as a result of a myriad of reasons, and as I said one trade should or even 5 for that matter should be the cause to rewrite an entire method. Series of adverse events and good events could happen.

I have no idea what you mean by being skilled over profitable? Your skills are reflected in your P&L when it comes to trading. Your goal is to refine your skills, but the end result it's your bottom line that matters . You improve the process to be ahead, and that is the real challenge, in my opinion, is the "refinement".

I do not downplay the psychological issues that occur during the trading process, but I can also tell that many “psychological” problems are just a facade for lack of adequately applied, correct knowledge, and confidence in decision making.

That's good to know. I was always taught that if you can make at least a 50% success rate you're doing average. But I'm sure thats where more education comes in, and more psychological disipline comes in.

they say losses are unavoidable in trading and for years i believed them.

If you believe them, then you will continue to lose.

Markets move because of market realities,realities which can be discerned from the market action in front of you.
i know this will not help you practically to make money .

but i can assure you that all the millions of gurus who advocate risk reward strategies are misunderstanding markets.
Markets do not play with dice

Honestly that is the first time I have ever heard of someone never losing. So I'm not sure if your really a master trader that never makes mistakes, or if you are trying to steer me in the wrong direction.

But mistakes will happen, and for someone like me who is still in a learning stage, I have to deal with them accordingly until I am like this mysterious master trader you speak of....

But I'm going to go ahead and assume you mean good in this post and take your comment as good hope for being a master trader

 

[Diskreet]

If the loss was an exercise in minimizing losses (like waiting for a rebound and selling as it approaches my purchase price) or executing a stop loss, I celebrate and look for the next trade in a reasonable/rational way.

If the loss was a disaster (lost all discipline), I curse myself to hell and realize how irrational we can be at times, and somehow end up seeing things very clearly for the next little while as I make money back.

Complacency then sets in and the cycle starts over again. The hope is to minimize irrational losses and happily execute rational losses to allow for steady profits to be realized.

 

[fibo_trader]

they say losses are unavoidable in trading and for years i believed them.

If you believe them, then you will continue to lose.

Markets move because of market realities,realities which can be discerned from the market action in front of you.
i know this will not help you practically to make money .

but i can assure you that all the millions of gurus who advocate risk reward strategies are misunderstanding markets.
Markets do not play with dice

For the cop who is watching my every move, this here is a very friendly compliment delivered in unmistakeable Sesame Street language, so go easy with the Banning threats, OK? . Sometimes trouble just follows a man, heck its got to the point I can't even go to the can in peace no more without a cop taking a shot at me.


To padutrader,

I knew it was YOUR coming that was foretold in the Markets as in the Bible and therefore we were not to expect another.

How can I, a mere losing trader, baptize thee?

Your answer, "so the scriptures may be fulfilled" has been accepted.

 

[MattZ]

That's good to know. I was always taught that if you can make at least a 50% success rate you're doing average. But I'm sure thats where more education comes in, and more psychological disipline comes in.

You should develop your own ROI, without the ongoing "race" to compete with something that perceives to be good. Each trader evolves as he makes his conclusion and observation. Regretfully, in this age of the internet, there are many theories of what is possible, but many of them are far fetched. On the other hand, there are also comparisons by experienced traders to the S&P500 that is just an index that adds and removes companies and might have to do very little with one's method.

In my personal opinion, you should only strive to improve your method until you reach your own optimal success. Let me use some examples here.

Here is my Crude Oil Strategy; https://automatedtrading.optimusfutures.com/system119637122 As you see, gains came from 30% of the trades. Here is my Forex strategy: https://automatedtrading.optimusfutures.com/system119383938 Again, I want you to pay attention to two things: 1) My drawdown is double the current gains 2) My biggest loss does not exceed so far any one single gain. Yet, it is still positive.

I am just illustrating examples where real live trading may take a different form than what you might expect. Many traders when encountering a big loss, stop the trading and "tweak" when it is not necessary at all.

I hope this gives you the mental freedom to develop your own.

 

[padutrader]

Honestly that is the first time I have ever heard of someone never losing. So I'm not sure if your really a master trader that never makes mistakes,

i have done nothing but lose for ten years
but i have always believed that markets movements are rational and therefore predictable.
i have also always believed that it is possible to have 100% win rate on a consistent basis even when scalping.
call me romantic ....but you have to believe before you can achieve anything.
i have always had a dream,a burning hunger to be the best in the world.

 

[fibo_trader]

i have always had a dream,a burning hunger to be the best in the world.

You have surpassed that dream. Everything beyond this point is an overrun, maestro. You made it. Enjoy the fruits of your strong Intention.

 

[kventin.upgrade]

In theory I am moving on to the next trade. I am 100% satisfided with my loss and don't look back. Practically, I am don't geting out of a losing position until the chart turns back in my favor.

I am never wrong. - it's both funny and sad.

 

[padutrader]

Practically, I am don't geting out of a losing position until the chart turns back in my favor.

I am never wrong. - it's both funny and sad.

can you explain this? you say losing position but at the same time you say you are never wrong?

i believe and have always believed that it is possible to have a 100% win rate....i do not think Sachs,and other big boys, when they sell, takes any risk.

and yet traders are obsessed with risk....losses are due to misunderstanding the markets

market does not play with dice.