How do you cope with a bad trading day?

zow

Active member
136 0
All the above is good advice for dealing with a bad trading day.

Just wanted to point out that it is all EQUALLY relevant for dealing with a particularly GOOD trading day!
 

al-motor

Active member
249 0
you are right there Zow-

I think over confidence after a good run can cause disasters- i.e. thinking that u know it all...............


Al
 

grubs50

Well-known member
408 0
but u feel d losses more esp if u feel it was down to a dodgy decision making process...............at times it's not d loss itself but the manner in which it came about.
 

zow

Active member
136 0
grubs50 said:
but u feel d losses more esp if u feel it was down to a dodgy decision making process...............at times it's not d loss itself but the manner in which it came about.

In the short term good trading is not directly related to profit or loss.

i.e. you can still trade well and have a losing day, and conversely you can trade badly and still make money (briefly!).

So whether you make or lose money on any particular day, the most important thing is to review whether you TRADED well and resolve to trade even better tomorrow. The profits will flow regularly surely enough.
 

peedee

1
341 0
Again grubs i agree, what does my head in if i go into negative territoy is that sometimes it was my own fault for maybe being to hasty, instead of keeping your cool you flap so you dont miss the boat, and all along your telling yourself "dont panic Mr Mannering". Thats a thought 'The dads army day trading semminar', every friday.
 

grubs50

Well-known member
408 0
I think Zow makes a good point there.............i suppose our reactions will always be different to various trading situations but it won't hurt to learn from other ppl's experiences.
 

peedee

1
341 0
I think i know what Zow's saying 'in a way' sometime there are external forces that affect the market 'short term' that your methodology cant allow for( that really pisses me off ), in fact judging by some of my recent posts anything less than making a quick buck pisses me off,( self realisation), you cant beat it!
 

zambuck

Experienced member
1,608 102
How do u cope with a bad trading day?

.....by treating family to meal in an exclusive restaurant....and that is few times a month......
 

zow

Active member
136 0
peedee said:
Sorry Zow, youll have to explain that one mate........

I think i know what Zow's saying 'in a way' sometime there are external forces that affect the market 'short term' that your methodology cant allow for( that really pisses me off ), in fact judging by some of my recent posts anything less than making a quick buck pisses me off,( self realisation), you cant beat it!


Well that can be part of it, an unexpected event can save you in a 'bad trade' or plunge you into a loss when in a 'good trade', but even on a normal 'no-unexpected-surprise-events' day it is still valid.

It goes back to the win:lose ratio. Say you develop a fantastic system with a win:loss ratio of 10:1. That still means you will lose money once every 11 times despite doing everything correctly.
After one such loss, does that mean you should suddenly abandon the system and do the exact reverse? Of course not. It may well feel bad, but you review the system/timing/signals etc, to see if you could have done any better/different, - as you should also do after a profitable day.
Even with hindsight you may conclude that you did precisely the right thing according to your system, and this is the 1 in 11 losing trade.
So as long as you have confidence in the system and your ability to execute it you can say you traded well but lost money on this occasion - no bad thing.
 

CityTrader

Established member
665 26
Personally I feel the need to reward myself if I've had a good day. I buy an electronic toy or gadget ( yeap my study is one big toy cupboard! ) buy some books, some dvd's go for a good night out with some mates .

Conversely If I'm in one of my bad periods - I cut my spending back totally- no rewards...

Like playing poker, I believe that unless you feel the pain from a loss you will never be able to move on. It will become too easy to accept your losses. And I hate losing money whether it's £500 or £ 50,000 ( now that was a really, really bad week..)
 

peedee

1
341 0
Some people by nature are able to control thier emotions some have to try a bit harder, personally i believe there is no better feeling than making money on the markets, so the opposite applies also, i just have to control my trading the best i can. I also give myself little rewards when i make, and go to the pub when i dont.
 
 
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