FXWW News

If you’re having a losing run, try this ……

I appreciate all the kind words since I got stopped out of cable last week but seriously, that was basically the first trade I’ve gotten wrong all year so don’t worry about me.
Those who have been struggling to get out of a losing trough should try this simple remedy. Firstly reduce your position size to the absolute minimum. Secondly, decide clearly in your mind what the important factors are before you enter a trade. Finally the hard part, you must wait, wait, wait until you have an 85% trade.
Rinse and repeat for 5 consecutive trades until you have regained some confidence. Then you can start to increase risk and frequency of trades.
Don’t get too despondent over trading losses, its only money. The time to stop trading is if you feel yourself starting to gamble irrationally.

  1. Hi Sean, you forgot to mention the therapeutic weekend chainsaw therapy you mentioned last week lol.

    When I had a crappy week a couple of months ago, I did pretty much what you’ve just suggested. After taking a a bit of a hit, I became a bit of a bunny in the spotlight, and wasn’t really trading anything much for fear that a lousy week would turn into something somewhat worse. I reduced my trade sizes to the bare minimum for a while until I started to get a feel of things again and then it was onwards and forwards. Worked a treat.

    I think it’s time to apply the same medicine at the moment but this time it’s simply because I just don’t have any real feel for the market or conviction right now, rather than on the back of losses. You’ve mentioned a couple of times previously that you like to have at least a small position in something to keep you focused, so I think that’s the way I’ll go.

    BTW, watching how you manage the “bugger, that didn’t work so well trades” has been at least as valuable/educational and probably more so than the really good ones.

  2. Hi,
    When Sean stopped out i read all comments about ask/recommend to reenter on cable or other pair and what Sean did? He relaxed and said okey enough for this week that is first sign of professional trader. Do to nothing and wait until trades not controlled by emotional.
    thank for this lesson Sean ๐Ÿ™‚
    Andrรกs

Leave a Reply

Your email address will not be published. Required fields are marked *