Losses just aren't that bad. Even long strings of them.

deaddog · Sep 2, 2022

Andor Manly said:
Yes, Managing losses plays an important role, one should always analyze the trading loss and review it in order to not repeat the same mistake again.
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You are assuming a loss is a mistake. That's a mistake.

Buy1Sell2 · Sep 3, 2022

jnbadger said:
I run a strat which requires very tight risk management, which means my win rate is lower than what some would consider to be "professional" (It's <60%). But it has served me very well because one win can make up for 10 losses, and I can't remember the last time I had 10 losses in a row. But any loss can be very frustrating. Especially when you're new and you're trying to get into your flow. Multiple losses can make you question your abilities, your judgement, and ruin your confidence. More importantly instincts tend to take over after a string of losses and make you want to take profits as soon as you have them. Then you look back and a couple of those trades could have made you profitable for the day/week/month. This still happens to me once in a while, but I push through it and still follow my exit plan for winners.

I live in a small town in western Wisconsin, and when I hear sirens, I sometime get curious and turn on the scanner radio on my phone. Turns out there was a head on collision about a mile from my house with multiple injuries about 20 minutes ago. PD, EMT and fire are on the scene, and a life link helo is on its way from the Twin Cities.

My point? (helicopter just went over) What's the worst that's going to happen during a drawdown? Ok, so you get emotionally distraught. If you're new, it's natural. Just keep putting in the work. If you've been around awhile and you have a system in place which you know to be profitable and you still succumb to these emotions, all I can do is repeat what Lescor said a long time ago (one of the most profitable traders ever on this board). "Think like a pro and act like one".

Again, what's the worst that's going to happen if you're up a little in a trade after a string of losses? You get stopped out again. Big deal. Man up and deal with it. You're not getting a phone call from the police telling you your loved ones are in a helicopter after a serious accident. It's just another loss.

I'm in my 26th year, and I've simply just turned it into a mathematical game, and it's helped me so much.

Good luck to all, and for God's sake, keep it in perspective. It's just a fucking game after all. We're just lucky enough to play it.
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https://www.elitetrader.com/et/thre...ment-is-the-only-true-edge-in-trading.292728/

Overnight · Sep 3, 2022

Buy1Sell2 said:
https://www.elitetrader.com/et/thre...ment-is-the-only-true-edge-in-trading.292728/
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Good ol' PRM. Been quite a while since we last saw you on that warpath. Where has that part of you been? We missed you.

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Losses just aren't that bad. Even long strings of them.

deaddog

Buy1Sell2

Overnight