All traders see losing days. I do not think there is a single trader who has never lost while trading options/futures or equities. If you take too much stress then trading is not for you. These days will come for sure, you cannot avoid them. If you get frustrated due to losses you will start doing revenge trading – revenge trading is a sure shot way to lose more in the stock markets. Even if you succeed one one revenge trading it will not bring back all the money lost. This can bring in mental issues. This is the reason I emphasis on hedging all your trades so that even if you lose money it will be small amount that will not bother you much. You can do my course and learn hedging in a proper way plus you will learn strategies to make a monthly income.
So How To Bounce Back From Bad Trading Days?
Do Not Focus On Intraday Results – Your Monthly/Quarterly & Yearly Results Matter
Traders keep a constant watch on their trades. This is a BIG mistake. Constant watching is actually dangerous for trading. When you watch constantly you are most likely to take bad trading decisions when the trade goes against you. What occurs in one second or one trade is not a final result and dopes not make you a good or bad trader. It takes weeks or moths to know how you are as a trader. If after three trading months you are in losses, then you need improvement. If you are in the green after three trading days, you are a good trader – but your profits should far exceed current inflation of your country. In India current inflation in Feb 2018 is approx 5%, so your profits in a year of trading should exceed three times inflation which is more then 15%. If you are not making more than 15% a year then you still need improvements. Ideally a good trader is someone who can make at least 25% a year.
If you have a back up data of your trades then check your bad trades and see of they all have something in common. If yes you need to work on that weakness. In fact you should check the good trades as well and if you see that they have something in common then you must try to repeat those trades or trade them more often.
Do Not Keep A Week Mind & Body
A trader needs to be healthy. Any botheration about your heath will show on your trades. If you are having a severe headache do not trade or if you are not feeling well do not trade. For that you need to eat healthy food and exercise for half an hour everyday.
Physical exercise like running about a kilometer is one of the best ways to relieve stress after a losing day. As a trader we need to sit in front of our laptops from 9 am to 3.30 pm (life it tougher for Commodity & Forex traders). This is bad for both your physical and mental health. Note: The strategies in my course are such that when you trade, you need not monitor them continuously every second. You can set them and forget them till the next day. Monitoring twice a day is more than enough.
For traders who constantly keep a watch on their trades – trading is time-consuming, mentally and physically exhausting. If they exercise it will keep them healthy. A traders needs to follow a discipline in their trading as well as health.
Do Not Keep A Constant Watch On Your Trades You Will Most Likely Take A Bad Decision
Need I say anything more on that? How many times you have taken a stop loss against your plan just because you were watching your trade going negative. We are humans and its obvious that if you see making a loss you will sure come out of it only to see that the trade went in your favor just after you took a stop loss. There is no point in repenting later. Mistake was done because you were constantly watching your trade.
Its better to stay away from you trades for some time. Let the markets decide the result of your trade – you have no control over it so why watch continuously? You may over trade and destroy your wealth.
End Of Day Study Your Trades
If you made a loss you need to study why you made a loss. Write it down on a peace of paper. Never repeat that mistake. Please keep in mind that not all losses are because of bad trading decisions. Some can be good trade but bad luck. You need to figure out mistakes from bad trade even if it made a profit.
Study Your Past Win Trades
Studying the winning trades are also important just like studying the losing ones. They will help you know exactly what you need to do in order to replicate that success.
What You Can Do If You Are Losing Money Trading Options
If you are losing money trading options and on a revenge trading path then you are on a path of financial suicide. Do not get on this path of financial destruction. Learn conservative trading. Learn to make small profits first like 2-3% a month then try to make 5-7% a month. Both of which can be learned in my options course. Hedging will ensure that your losses are capped but profits soar.
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Dilip Shaw, Founder
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