How to Handle a Losing Streak ( everyone has them )

 A trader emailed me a instant back, recourse for some advice on a sterling money administrator for him. He uttered he was a offensive trader and distressed of losing money. I query there is one non - rookie trader declaiming this allegory who has not experienced at rudimentary a puny pace of in need performance in trading futures. I ' ve verbal before that most successful senior traders obtain bounteous losing trades than winning trades in installment inured extent. The key is maximizing profits on the winning trades and minimizing losses on the losers.

 I will also weigh that at one point or massed in most traders ' experiences, they, hugely, posses felt alike fairy traders. I certainly posses. ( Those who flap they posses never had a pace of in rags trading performance or felt detestable about a trade or trades are likely either lying or completely out of touch with futures trading actuality. )

 Whence what ' s a trader to do when losses start to pile up and winners turn out heirloom. Here are a few tips that I ' ve picked up over the elderliness from some of the authentic peerless traders in the business

 Don ' t overtrade. If you are trading several markets and not having department consummation, cut back to trading one or two markets. You can displace fewer trades and closely and document your eminence or failures other chewed. Consideration, your trading bill won ' t emblematize strained down wherefore hastily.
 Direct a broad trading diary. If you maintain a spanking trading diary, you can starch back and detect if there is a common yarn among your losers - - and your winners, and conceivably make the proper adjustments.
 If you are not trading that crowded markets and still racking up losers, return a hole from trading for a go. Herd your thoughts. You may demand to paper trade for a week to amuse your confidence back. So, if you are still losing on paper, you will fancy to look for other trading methods.
 If you are losing money trading, DO NOT ( I REPEAT ) DO NOT best shot to make a fat homely - amble - type trade that will get you back to precise or the love side in a hasten. In gospel, do conscientious the reverse. Make smaller trades that risk less cash, until your performance starts to turn around and you can resume your typical asset allowances for trades. Successful traders keep at the rough waters by hunkering down and being conservative.
 Exhibit patience and discipline. I ' ve preached about this before. Are you following a trading plan that you devised before you put on the trade If not, you should speak for. You are not shooting from the hip ( no exit strategy in community ) once a trade gets initiated, are you If hence, that could hold office molecule of your headache. On the patience belief, are you impatient I ' ve talked to successful position traders who may only trade a few times a bout, seeing they wait for what they observe is that entire set - up to eventuate. If you are a position trader ( as opposed to a interval trader ), you don ' t retain to appear as in the market all the date. Wait for the superexcellent trades to develop and don ' t chase markets.
 Express confident. Own faith in your trading methods. And if you don ' t have faith in your framework, why don ' t you If your methods are totally not successful, gem something likewise. Read some of the alive with books out there by the successful traders, and how they hold traded successfully. But equate cautious of the person who wants to sell you some then - called successful trading mechanism for capacious legal tender. ( Make out the touching item on oppressive industry. )
 Drudge harder. Don ' t see to produce winning trades if you are not working undoubted solid at trading. Do you recognize well the fundamentals of the markets you are trading Consistent if you know technicals well, you should obtain at lead off a shipshape understanding of a market ' s fundamentals. Here ' s an illustration Lease ' s voice the charts and technical indicators look bullish for corn and it ' s the continuance before a elder USDA report. Ready traders likely won ' t initiate a trading position in corn the interval before a voluminous subordination report is out.

 In plight you ' re reverence what I told the tutor who emailed me and told me was a loathsome trader, here ' s what I uttered Don ' t dole out up trustworthy presently. The fact that he admitted he needed some help ( before he cast away all of his trading assets ) is a inarguable first step. I inasmuch as told him I would write this side because there were likely many traders who feel the same way, at times, that he feels, and that there are steps to take on the road to recovery and eventual successful trading.