How do you handle losses or losing streaks?

[angelnish]

I stop and take time out. I seek advice from trading colleagues on where I went wrong and how I can improve. I look for new and more advanced strategies to implement in my plan.

How do you handle losses or losing streaks?

 

[scose-no-doubt]

First I laugh sarcastically at the looser, then I scream and swear at the screen, then blame the spread bet provider, then blame the market for being full of idiots who are buying when they should be selling and vice versa. Doesn't everyone?

 

[the hare]

On a practical level I smash keyboards !

On a more theoretical level, I find that it helps if you have some sort of statistical expectation that you monitor against, I cant see how you could even begin to handle it otherwise.

 

[YouAreNotFree]

It doesn't bother me too much. I just know that I'm that much closer to my next winning patch.

 

[kimo'sabby]

I stop and take time out. I seek advice from trading colleagues on where I went wrong and how I can improve. I look for new and more advanced strategies to implement in my plan.

How do you handle losses or losing streaks?

If you can't handle losses in this game...you're pretty much fncked. 'Lossing trades' hold as much information as 'winning trades'.

If you don't know why you got it wrong, you'll never know why you got it right.

Losses are not always your fault as such, everyone is being taken advantage of, where the markets are concerned.

 

[ChocolateDigestive]

If you can't handle losses in this game...you're pretty much fncked. 'Lossing trades' hold as much information as 'winning trades'.

If you don't know why you got it wrong, you'll never know why you got it right.

Losses are not always your fault as such, everyone is being taken advantage of, where the markets are concerned.

good post kimo. unless you can take controlled losses you are doomed.

 

[brewski1984]

I just double the stakes on the next trade.

 

[trendie]

Initially I panic.
Then stop trading.
Then continue my trading at perhaps a lower risk level.

I DONT change my core rules. That would be the equivalent of changing your settings to what would have won your recent losers, conveniently forgetting that would alter all your previous win/lose sequences. A sort of dynamic curve-fitting. Bad idea. I have a graveyard full of dead indicators.

I might add another instrument, to spread risk.

Assess whether I have been lax with entries or exits.
Assess whether I have become complacent and been taking "almost" trades.
Assess whether my losing run coincides with a reduction in recent good trades, and whether I have been "making up" trades.

Assess whether my recent losing run is within parameters for my set-ups.
Assess whether volatility has changed enough for me to reconsider my stops and targets.

Get back to trading. And stop worrying.
Stop getting distracted by T2W, and go into solitary mode.

 

[forker]

Probably need to assess if your losses are a result of mistakes or the winning trades are no more than luck and not an edge.

 

[trendie]

Probably need to assess if your losses are a result of mistakes or the winning trades are no more than luck and not an edge.

That always a factor. True even of pin-bars.

 

[Jack Francisco]

I cry- Just Joking . Lol
What we should do after the big loss to be honest just take lesson and did not takes the loss on the heart.
Because if your mind remind you again and again you lost the money so what ever you have left in your account it can be vanish too.

Take a break from trading for a while and try a with a calm mind.

Try to get focused for next trading ...market will give you chance.........

 

[InvestYourWay]

On a practical level I smash keyboards !

On a more theoretical level, I find that it helps if you have some sort of statistical expectation that you monitor against, I cant see how you could even begin to handle it otherwise.

The Hare is absolutely right, you need a good view of all your wins and losses on the system to date so that you can put the trade in perspective. Is it in the 95th percentile of bad trades or just the 50th? It is too easy to let emotion take over otherwise.

 

[0007]

On a practical level I smash keyboards !

On a more theoretical level, I find that it helps if you have some sort of statistical expectation that you monitor against, I cant see how you could even begin to handle it otherwise.

Absolutely right. If you don't know the statistical parameters of you edge then you can't possibly assess whether your loss is just something run-of-the-mill and to be expected or something more serious. If you know your long-term profit to risk ratio, winners and losers ratio at the very least, then you will just take routine losses in your stride -- it's the cost of doing business.

Before having a nervous breakdown over your trading results, you should at least assess them statistically so that any breakdown only occurs when justified.

 

[tim3]

I stop and take time out. I seek advice from trading colleagues on where I went wrong and how I can improve. I look for new and more advanced strategies to implement in my plan.

How do you handle losses or losing streaks?

It is quite possibly the most difficult part of trading.

On the boards you will see every way imaginable of avoiding the issue,holding on to losers to long or even adding to them doubling up changing tact with every trade blaming others everything to avoid admiting that the trade went wrong.

If you read the Disciplined Trdaer by Douglas you will understand why.

 

[angelnish]

It is an honor to have the opportunity to participate in the discussion of this excellent post! I wish to extend my thanks for that.

Thanks for sharing your esteemed opinions friends, more replies are most welcome..

 

[TheLastBear]

I don't allow it to affect me and keep trading. There are no emotions when it comes to trading and if you allow a profit/loss to influence your behavior then trading is the wrong thing for you. Since nobody is perfect I do admit there have been times where I wanted to toss my trading platform in the ocean lol.

Step outside for a coffee or a walk (or whatever you wish to do) and come back once you calmed down.

 

[jj869812]

Accept it's a statistical certainty and look at how it could have been reduced or foreseen.

 

[kimo'sabby]

Two catagories of losses, non-competent losses and competent losses. One type of loss hurts, i'll let you decide which one.

 

[Jack Francisco]

I don't allow it to affect me and keep trading. There are no emotions when it comes to trading and if you allow a profit/loss to influence your behavior then trading is the wrong thing for you. Since nobody is perfect I do admit there have been times where I wanted to toss my trading platform in the ocean lol.

Step outside for a coffee or a walk (or whatever you wish to do) and come back once you calmed down.

I agree with you. One should never mix emotions in trading.
Emotional factors are our the most dangerous enemies in this market. Fear of loosing money keeps traders away from trading at right time and greed does not allow traders to book profits which are there.So traders must learn to control their emotions.

 

[angelnish]

I agree with you. One should never mix emotions in trading.
Emotional factors are our the most dangerous enemies in this market. Fear of loosing money keeps traders away from trading at right time and greed does not allow traders to book profits which are there.So traders must learn to control their emotions.

well said dear.
I fully agree with you.