how to come out of losing streak?

[Ali_001]

hi
i am a day trader. Right now i am facing the loosing streak and now how to cope with it. i stopped trading for few Weeks and i cut my trading size i tried to trade in alternative day's , went for paper trading few day's but still i am Anabel to make profits and Anabel to come out of looses.

what exactly triggers loosing streak how wee can now that it is just anbout to begin?

how many of you had the same situation as mine ? how you fought back and how you able to do so?

warm regards
Ali

 

[uasish]

Re: how to come out of loosing streak?

Ali 001,

When i lost few Lacks in day trading & was in my early trading carrer i also was in this state,now in a slightly better stage becoz of few Wins in between the looses.
At that time got an email reply from the famous 'Larry Williams' ,where i stated my problems he just gave a 1 line answer Reverse your trades.I was truly angry & frustrated with his reply.Later on after few days when my anger subsided i realised 2 things from his reply.
1) The opposite trades ,if i would have done could make my negative Ledger to a positive Ledger with the same loss amount would have been the profit amount.So one can earn from Mkt.
2) I was getting my direction of Trades Wrong.

Plz try to fathom out how to get the direction right 7-8 out of 10 times.

Asish

 

[uasish]

Re: how to come out of loosing streak?

Thats a very high success rate u are asking for... is it even possible?

Still the r/r needs to be proper

If he makes 5 points for 8 trades and looses 100 points on 2 trades, he still looses a hell of a lot of money in spite of being right 8 times out of 10

RJ,

Undoubtedly r/r ;the Stop these are deemed to be taken care by him.
7 of 10 in Direction is possible but mostly when we come to know about the direction part then either the Stop is far or we become sceptical about how much more juice is left.

Asish

 

[niftyrider]

Re: how to come out of loosing streak?

Ali 001,

When i lost few Lacks in day trading & was in my early trading carrer i also was in this state,now in a slightly better stage becoz of few Wins in between the looses.
At that time got an email reply from the famous 'Larry Williams' ,where i stated my problems he just gave a 1 line answer Reverse your trades.I was truly angry & frustrated with his reply.Later on after few days when my anger subsided i realised 2 things from his reply.
1) The opposite trades ,if i would have done could make my negative Ledger to a positive Ledger with the same loss amount would have been the profit amount.So one can earn from Mkt.
2) I was getting my direction of Trades Wrong.

Plz try to fathom out how to get the direction right 7-8 out of 10 times.

Asish

totally agree with u ashish, the main reason behind our losses is our ego.
We dont want to get of the trade in small losses by accepting that, the trade is wrong and after that incurred big losses in that trade.

We will be happy and thankful to u if post emal here.

---NR

 

[niftyrider]

Re: how to come out of loosing streak?

do read this
and paste it on desktop

follow it for few weeks.

 

[Niks]

Re: how to come out of loosing streak?

Thats a very high success rate u are asking for... is it even possible?

Still the r/r needs to be proper

If he makes 5 points for 8 trades and looses 100 points on 2 trades, he still looses a hell of a lot of money in spite of being right 8 times out of 10

Getting the direction right 8 out of 10 times is nothing spectacular.
Getting in at a good price (in your whatever timeframe) is all it is about!

There was a very good quote from Linda Rasche, don't remember exact, but was something like" I pay particular attention to the entry price. If your entry price is good you can exit at no or negligible loss even when you are wrong".

A good entry price means the price for good risk/reward.

Secondly even if you are a 'established' trader, that is consistently profitable for last 12 months atleast you may still have a loosing streak. The solution is to cut down size pretty fast.

 

[NOMINDTR]

Re: how to come out of loosing streak?

Ali,

Niftyrider's poster is too good.

I suggest you to check and create a poster yourself that could reflect your personality and trading style.

http://www.traderji.com/words-wisdom/8108-rules-masters-6.html

Good Luck

 

[Capricorn]

Re: how to come out of loosing streak?

Go here. It helps me relax.http://www.traderji.com/general-chit-chat/5909-jokes-humours-shayaris-new-post.html

 

[anshuman.chaudhuri]

Re: how to come out of loosing streak?

That we have such great seniors in this trader community as Ashishda gives all of us a light of hope in times of darkness and despair.

 

[gaspy]

Re: how to come out of loosing streak?

You have stopped your positions : It's perfect.
Have you a trading plan and do you follow exactly this trading plan. If not ,begin to write your trading rules:
how do you enter in the trade and why
how do you exit and why ( stop loss, target, indicator...)
what instrument do you trade and why
how much is your risk,( for one position and for the whole account) how do you fix your stop loss level.
How many lines you can trade in the same time.
....
After you can see if you buy as you feel or if your system is fixed.
If you buy according to your feeling, stop to trade! Except if you are a genius!
If your system is fixed, you can count what is your % of winning trades and the average gain of winning trades( gain), and average loss on losing trades (loss) and the ratio gain/loss.
Let Count also how many consecutives losing trades you have.
If your system has 75% of win percentage you have a probability of 75% to see 5 consecutives losing trades on 50.If it has 25% of winning trades you have 91% to see 10 consecutives losing trades. So you can see how much drawdown you can support. Andat the opposite, if you can see 10 consecutives losing trades be sure your system is under 25% of winners.

Don't forget : in day trading the probability to move up is 50% and move down 50%, so if you buy anytime you have 50% probability that the price goes in your favor, if you use an indicator try to improve the 50%.

Perhaps you don't need an automatic system but an only indicator to identify trend, or you need what Carter calls a set-up, some conditions to enter or not enter in position.

Also, write money management rules, but not classical :
- if you lose more 3% in the day stop to trade
- if you lose 2 times 3% stop to trade during the week
...

- if you win 5% in the day, don't trade the next day
- if you win 20% in the month stop for the month.

Don't try to recover losses immediately. If it's not your lucky day, don't insist, Another opportunity will be there to morrow.

If your system - but you understand it's not an automatic system- give you more than 60% of win trades you can improve your results as this, you play 1 position, if you win you play two, if you win you play three, no more than 3. When you lose you restart with one position.

Gaspy