How do you handle losses or losing streaks?

angelnish

Active member
145 1
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?
 

the hare

Senior member
2,949 1,283
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.
 

kimo'sabby

Experienced member
1,623 287
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

Experienced member
1,153 281
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.
 

trendie

Legendary member
6,535 1,127
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

Senior member
2,688 500
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

Legendary member
6,535 1,127
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

Member
85 1
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

Newbie
8 3
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

Senior member
2,376 660
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

Active member
245 10
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.
 
 
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