What to do after loss

[PPC]

hi there,
I have a question for you and would like to hear your opinion. Is it advisable to stay away from the market after your losses?
Thank you in advance.

Just by asking such a question suggests that you’re not prepared for such situations because usually traders know very well how to handle it.

Imagine that person which you love the most (family member or friend) would be in your situation. What advice would you give him/her from a detached perspective?

Definitely take a longer break, you need to regain objectivity.

Do lots of introspection and be brutally honest with yourself.

Most of us have been in your situation before. Learn from your mistakes, write them in your trading journal, and come up with ways to ensure it won’t happen again.

Go and study some trading psychology book, there are some decent one’s around. Van Tharp is very good on the stuff you’re dealing with.

Also, make sure that you’re running trading as business and not as an expensive hobby.

Whatever you do, don’t start revenge trading.

 

[smallfil]

Being fearful is just as bad as being greedy. Both will destroy your confidence and make you fail as a trader. What you should be focusing on is your risk management and position sizing. If you limit your risk to 2% per trade per studies by academics, your chances of blowing up is nil. So, you can experience 5 or 7 losses all at once and you would be down only 10%-14% and able to get back into the stockmarket. You should think like a casino if you have a trading system that has positive expectation. Over the long haul, you should end up a huge winner. On the other hand, if your trading system has a negative expectation, you are guaranteed to lose all your monies. That is why you need to backtest your trading system, to make sure it has positive expectation.

 

[Redneck]

hi there,
I have a question for you and would like to hear your opinion. Is it advisable to stay away from the market after your losses?
Thank you in advance.

Depends

How mentally / psychologically drained / wrecked are you after said loss

Does a setup / edge (however you define it / them) exist


Manage yourself - first and foremost


Then if you good to go - trade on..., if not - live to trade another day


Losses are simply one aspect of this business - they should never define..., nor limit you


RN

 

[SimpleMeLike]

dipshit make it back right now! get back in there and get your money back! how you gonna win sitting on the bench?

Good Morning Mark,

Lmfao hahahahahahahahaha this the funny post on ET ever

"Get your money back"

You are so right

 

[SimpleMeLike]

hi there,
I have a question for you and would like to hear your opinion. Is it advisable to stay away from the market after your losses?
Thank you in advance.

Good Morning ThaddeusFinch,

I spend 100% of my manual trading efforts planning and thinking how to get the loss back and recovery Drawdown.

Winning is easy and effortless. Losing requires more robust and strategic planning.

Fall in love with Drawdown recovery in X seconds/minutes/hours and you will be a millionaire in X months/years Guranteed.

As manual discretionary traders we seriously have to KNOW we will win and recovery the loss. Like you seriously have to KNOW this. You have to feel it and you have to KNOW it.

Good conversation to have.

 

[earth_imperator]

What to do after loss

In Japan, harakiri is usual...

 

[hilmy83]

In Japan, harakiri is usual...

If everyone has a trusted buddy to have them punch you in the mouth every time you do something stupid in trading, I think we all will learn quickly.

 

[Magnolia York]

hi there,
I have a question for you and would like to hear your opinion. Is it advisable to stay away from the market after your losses?
Thank you in advance.

I think you must stay away from the market and just watch the market for a while and after that start trading again.

 

[SimpleMeLike]

If everyone has a trusted buddy to have them punch you in the mouth every time you do something stupid in trading, I think we all will learn quickly.

Hello hilmy83,

LMFAO HAHAHAAHHAHAHA

And we all know why we do stupid things in trading. We already know why we do it.

It is not about losing, traders do not want to compete within ourselves and come from behind and reach a new equity account balance high.

And we do not have enough money to trade algos the right way.

 

[ThaddeusFinch]

Something that gutted your account

What kind of losses are are you talking about?

Something that gutted your account, and now you don't have enough money to keep trading?

So you are asking if you should walk away, or move new money into your account so you can continue trading?

Or did you just have a really bad day, or a really bad week, where you lost, like, I dunno, eight percent of your account value or something?

I'm interested in learning how to prevent further losses. Do you advise me to open a new office and resume trading if I have enough money?