Did you just take a big loss trying to make up for a small loss?

 

I’ve been there. Every trader I know has been there. I almost think it’s a rite of passage we all must go through.

Right off hand, my first instinct is to tell you to have a daily loss limit and honor it. Going forward, you have to remember how you feel right now after today’s loss. Resolve to never do this to yourself again, EVER! Think about how happy you would be if you could wave a magic wand and go back to just being down $300 on the day. You would gladly walk away from your pc at the end of the day down $300, right? And you would feel good about it! Never forget that and next time you might look at a small red day as ‘not so bad’.

Also, have a reason for every trade. If you can’t give a reason, based on the chart, then don’t take the trade.

Let go of today’s loss or you will compound the issue tomorrow. Make tomorrow your starting line and try to be green everyday going forward. If you dwell on your account balance that you started with today, you will not have a clear head as you try to get back to that balance. It’s not an emergency that you get back to that balance quickly so just call tomorrow ‘day 1’ of your new trading career. A career where you will never trade recklessly again. A career will you will have a daily stop loss in place and honor it, no matter what! If you feel yourself slipping into old habits, STOP TRADING and go for a walk.

If you love trading, then you probably plan on doing it for the rest of your life. If that’s the case, there is no hurry to get that money back. Today’s loss can be the best money you ever spent if you use it to resolve to have 100% discipline and self control for the rest of your trading career (which hopefully will be for the rest of your life).

 

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