Losing money? Do the opposite...

My losing streak has been incredible the past fortnight. Everything that worked isn't anymore. I'm wondering, if I'm so good at losing then maybe if I just enter the opposite trade I will start making profits.

Imagine, your setup looks good for a long position but instead you hit the sell.

Has anyone actually tried this? It would be a interesting thread in journals.

I would imagine that most losses comes from one of the two following:

1: You are not trading but actually gambling. i.e. don't have a real system with rules.
2: Bad or just plain no money management at all.

If your problem is number one above then you might have a chance being successful with your idea.
If your problem is number two above(I believe most suffer from this) then I don't believe your idea would have a chance.
If your problem is BOTH then you must be really lucky to have been successful at all.

If you sit two traders down, one good the other not so good at trading, and give them a random flip of the coin to pick a direction to start trading, it won't take long for the good trader to be on the correct side of the market. Likewise it won't be very long before the bad trader is losing.(right or wrong side of the market.)

Any way, that's just my three cents worth.

I would add that perhaps

3: your system is good but inherently depends on certain market conditions (e.g. high volatility) and these conditions have ceased to apply

but I suspect more likely hwsteele is right with 1 and 2 above.

I suspect more and more that the various mechanisms for identifying entry points for trades are not that much better from each other as to make a trader a winner, its how you manage the position after entry that is the difference - i.e. how quickly you cut the losers and how far you run the winners. Maybe it would be worth doing a post mortem on your trades not to see whether there was a better entry point but whether there was a better exit point.

Do the opposite =
Let your profits run, and cut your losses short. Try that well known adage with your strategy and let us know....

i have 100% guaranteed success system if you have proper money management & still looking programmer help me with some tweaking..

Doing the opposite will not work, you will end up doing the opposite of the opposite....

everyonerich said:

i have 100% guaranteed success system if you have proper money management & still looking programmer help me with some tweaking..

Click to expand...

Are you providing the 100% guarantee?

mehow said:

My losing streak has been incredible the past fortnight. Everything that worked isn't anymore. I'm wondering, if I'm so good at losing then maybe if I just enter the opposite trade I will start making profits.

Imagine, your setup looks good for a long position but instead you hit the sell.

Has anyone actually tried this? It would be a interesting thread in journals.

Click to expand...

How many losses have you actually had?

What is your average win rate to date?

I ask as just because you have had a run of losses doesn't automatically mean the system is broken. From memory, a system with a 50% Win Rate, can statistically see 16 losses in a row and still be within normal constraints....

Also, do not assume that reversing your signals will make you money. If you haven't got a good grasp of Position Sizing and Money Management you will lose regardless....

As a sidenote, I notice that you have a vendor icon next to your name with the comments Newsletter, Tip Sheets / Trading Advice Vendor ..... I hope you're not currently offering these services!!!

mehow said:

My losing streak has been incredible the past fortnight. Everything that worked isn't anymore. I'm wondering, if I'm so good at losing then maybe if I just enter the opposite trade I will start making profits.

Imagine, your setup looks good for a long position but instead you hit the sell.

Has anyone actually tried this? It would be a interesting thread in journals.

Click to expand...

are you talking net losses? :smart: