We all face this situation in trading at least more than once. But we loose only when we quit!!!
when ever I have drawdowns/frustrations, I read this phrase below and I was able to recover, so am sure you will do as well.
"Failure is the Opportunity to begin again more intelligently" - By Henry Ford
The following user says Thank You to emini_Holy_Grail for this post:
Without knowing what/how it was worse, it sounds like you need to take some steps here right away to make sure the pattern is broken.
1) Cut position size in half.
2) Identify one or two CRITICAL goals to make sure you get an "A" on for the next several days (preferably, 2 weeks). Such as "I will NOT take more than 3 trades", or "I will NOT trade countertrend.", etc.
Only you know what #2 should be. But you've got to make sure steps are taken so that the next day is not worse than the prior two. And you must accept you cannot and will not make back all those losses in one day, probably not even in one week, and if they are really bad, then even one month.
Several things to learn and acknowledge: a few "worst days ever" can blow an entire account. They must be prevented at all costs. Patience is key. A really bad day can take just minutes and hours to unfold, but take days and weeks to recover from.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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The following 2 users say Thank You to Big Mike for this post:
I skipped posting yesterday even though the day was profitable. That really isn't the goal which is something I'm sure we learn the hard way. When i told a friend of mine that the goal of trading is to trade well and not to make money, they responded, "really?" I always thought the goal was to make money and to make a lot of it. Of course I think we all know that if that is our goal we are bound to fail. So, making the goal to trade well which means following the rules each and every time will bring the financial rewards.
I have a number of charts today. First thing is the day gets a C over all because at Mikes suggestion, and a good one at that I need to cut back on my trades especially if the day does not work out. I think 3 is a good number and i took 4 trades. I also give myself an F for the first 2 trades because the were counter trend. One was a loss and the other one was a winner enough to cover the loss. This is something that has come about because of a course I took. I don't want to roast anyone on this forum, and as far as I know the person does not belong to the forum, but the method is basically a no indicator method based on support and resistance and volume. It is kind of a VSA methodology. I tend to believe in VSA, but I think VSA does take into account the trend of some kind, but I'm not sure. Anyway, the first two trades of my day were counter trend on CL. The reason for the trade is indicated on the chart showing volume declining in the down move. This is taught as volume divergence and with an absence of sellers price should rise. The first trade i got stopped out. The second one was the same type of setup only the Red bar #2 has a very narrow spread on higher volume. This is taught as buying coming in or prof. money coming in. I made money on the trade, enough to cover the first loss. I am showing these because they are counter trend, risky, and the probability of the trade working is lower. The one that taught the course does not believe in indicators and said they lag. That is true, but I've come to realize we need to put as much ammo in our favor as possible. So, if the CCI, which I believe is momentum based says take shorts then I need to take shorts. Not in the shorts. I don't want to ramble on about this so ask question if you want to know something about it. Point is, I need to drop this method today and forever.
On a happier note I took 2 TF trades both for winners, but grade myself C+ on management. First target is 1 point hit on both trades, but the management on the first could have been better. The second trade first target hit for one point and 1.5 on the second and 2.0 on the third. A better job of management, but do much fiddling round with stops and targets. I need to decide my targets and trailing methodology and stick with it.
Even with trades with the trend and in favor of the indicators and even with profit and stop at even it is still nerve racking with all the price oscillation.
Thanks for all the comments and support.
The following 2 users say Thank You to David_R for this post: