I am starting this thread to help me and other fellow traders deal with losing periods.
I must start by saying that one of the delusions we have as traders is the believe that one day we will find that magical strategy that works all the time and deliver consistent, painless profits to us. Well if you are still in that delusion, let me break it for you. The truth I have realised after 6years in the market and probably upward of 10000trades executed is this: you will lose money.
I have learned to deal with loses with having a hobby aside trading. You need to learn to get away when you are getting smacked. Or have a dairy where to talk to yourself about how this week you are getting killed and how you feel like quitting the strategy or even trading altogether.
I think the most important thing in trading is learning how to deal with losing and often so consistently. I think the alpha problem with us traders is that we have been programmed to avoid pain. By trying to avoid losing, you lose. You need to accept the reality of trading: when you take risk, yes you have the upside but you can also get your *** handed to you.
I must start by saying that one of the delusions we have as traders is the believe that one day we will find that magical strategy that works all the time and deliver consistent, painless profits to us. Well if you are still in that delusion, let me break it for you. The truth I have realised after 6years in the market and probably upward of 10000trades executed is this: you will lose money.
I have learned to deal with loses with having a hobby aside trading. You need to learn to get away when you are getting smacked. Or have a dairy where to talk to yourself about how this week you are getting killed and how you feel like quitting the strategy or even trading altogether.
I think the most important thing in trading is learning how to deal with losing and often so consistently. I think the alpha problem with us traders is that we have been programmed to avoid pain. By trying to avoid losing, you lose. You need to accept the reality of trading: when you take risk, yes you have the upside but you can also get your *** handed to you.
When you see it, BET big.