When should you give up trading?

[Hoggums]

Cheers DB,

Something to ponder over the weekend.... Perfectly content with my testing and more than happy trading the system as its not my only trading income but like my stops, I like to keep my losses tight but its the old 'newbie' problem.... 'keep going till it comes back in profit or cut it quick and move on....'

Jezza

If it's any consolation - I've had a bad week this week too, wiping out all the gains I've made since end of Feb. I run an auto system and pretty much every instrument I trade has made losses this week, certainly for many of the indicies it's because the indicators are saying everything's overbought but the market kept on charging up until midday today. Currencies seem to have broken the trend also this week. mid-feb wasn't a good time too but was sitting on my highest account level at the beginning of this week. You just have to take the rough with the smooth.

However, I'm not worried, I'm confident my system works in the long term and from past experience any larger than normal drawdowns are usually clawed back pretty quickly as the market reacts quickly in the opposite direction.

 

[jezza888]

The problem lies in, similar to a single trade, when is it no longer valid?

The same as previous worst (as tested), one week more, two weeks more, or when the accounts empty?

 

[chump]

Jezza,
On the basis of the way you are 'talking' and the factual info that you have given . Consider going on next week ,BUT if it is a possibility take a lighter position so that any loss need not get you any more 'concerned' than you already are. Given you're current situation is within the tolerances of past performance there is really no basis for stopping other than emotional concern. Hence , deal with the latter by lightening up the position if possible.

 

[jezza888]

Chump,

Looks like the best idea at the moment... I don't want to knock it on the head early but I don't equally wish to fall into the 'I'll just run it till comes back in line' trap.

I think another week at a reduced lot size to see how it stands....

 

[rols]

At what point do you stop trading a system/methodology?

1) Once you have lost all your money?

2) 5-10-X losses in a row?

3) 3 months, 6 months?

4) Never? All traders/systems will eventually make money

Any ideas, tips?

Thanks

If you are asking the question then it may be time to quit, or take a step back.There really is no virtue in suffering, life is too short in my opinion. For some reason many of us believe suffering is a necessary part of success. I know many successful people. Some say they chose the path of least resistance to get where they are and some even admit their success happened by chance. Others achieve success by pursuing their passions in life and the success follows them. Successful people stand out from the crowd and would in my opinion achieve success in whatever they were doing.

Perhaps the question should actually read, "At what point do you start trading a system/methodology."

 

[jezza888]

If you are asking the question then it may be time to quit, or take a step back

Nothing is perfect and however you trade there will always be losses... Its just how many before you change your strategy? Taking a step back is all well and good but then you may never get round to ever pressing that button again.

 

[Chicken Curry]

Anybody who loses money in the initial stages of trading is on the wrong track.

Believe me, there is no need to lose any money if you trade small and learn slowly.

As the actress said to the bishop, " Size is not important".

 

[rols]

Nothing is perfect and however you trade there will always be losses... Its just how many before you change your strategy? Taking a step back is all well and good but then you may never get round to ever pressing that button again.

"One must step back to make the better leap."
(French Proverb)

"Once bitten by a mosquito, you worry about mosquitoes all day."
(Chinese proverb)

 

[jezza888]

Anybody who loses money in the initial stages of trading is on the wrong track.

Believe me, there is no need to lose any money if you trade small and learn slowly.

As the actress said to the bishop, " Size is not important".

Experience and size aside....

How many continual losses are acceptable?

 

[Chicken Curry]

Not many.

 

[new_trader]

If you are asking the question then it may be time to quit, or take a step back.There really is no virtue in suffering, life is too short in my opinion. For some reason many of us believe suffering is a necessary part of success. I know many successful people. Some say they chose the path of least resistance to get where they are and some even admit their success happened by chance. Others achieve success by pursuing their passions in life and the success follows them. Successful people stand out from the crowd and would in my opinion achieve success in whatever they were doing.

Perhaps the question should actually read, "At what point do you start trading a system/methodology."

By the same token, I have heard of many people that have taken over 10 years to become an "overnight" success. Never quit has been their philosophy.

 

[dbphoenix]

By the same token, I have heard of many people that have taken over 10 years to become an "overnight" success. Never quit has been their philosophy.

So why did you begin this thread if you've already answered your own question?

 

[new_trader]

So why did you begin this thread if you've already answered your own question?

I am trying to ascertain whether it is the right answer, or even a good answer.

 

[hungvir]

I've read somewhere in this board ''Winners never quit and quitters never win''. Perseverance is one of the virtue that is in short supply nowadays, I suppose.

Have a good weekend everyone!

Hung

 

[dbphoenix]

I've read somewhere in this board ''Winners never quit and quitters never win''. Perseverance is one of the virtue that is in short supply nowadays, I suppose.

I agree. Never quit. If you run out of money, take out a second mortgage.

If you're not a homeowner, borrow on your credit cards.

If you don't have any credit cards, borrow from your family, your friends.

If you can't borrow the money, sell everything you own and convert it to cash.

But never quit. Never give up.

Of course, when you end up living in a cardboard box, you may have trouble accessing the internet.

 

[jezza888]

there's always internet cafes! Or library's... they're normally free access!

 

[hungvir]

I agree. Never quit. If you run out of money, take out a second mortgage.

If you're not a homeowner, borrow on your credit cards.

If you don't have any credit cards, borrow from your family, your friends.

If you can't borrow the money, sell everything you own and convert it to cash.

But never quit. Never give up.

Of course, when you end up living in a cardboard box, you may have trouble accessing the internet.

A fool and his money are soon parted. If not in the stock market, it will be else where. Just different instruments.

 

[dbphoenix]

A fool and his money are soon parted.

But winners never quit. So, if at first you don't succeed . . .

 

[hungvir]

In reality, I think many traders just throw in the towel too soon. In life as well as in trading, having gut is an edge.

But it's always a sensible thing to reduce exposure after a string of winning or losing trades.

 

[new_trader]

In reality, I think many traders just throw in the towel too soon. In life as well as in trading, having gut is an edge.

But it's always a sensible thing to reduce exposure after a string of winning or losing trades.

What does 'reducing exposure' actually mean? Using tighter stops? This may increase the number of losing trades.