Day Trading Advice: Recovering From A Bad Day

Day Trading Advice: Recovering From A Bad Day

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you know just recently met with a trainer and I meet with them all the time and it’s happened to me a bunch of times and we’re talking about getting back from a really bad day recovering from a really bad day in the marketplace where you know I have this customer who makes a thousand fifteen hundred dollars a day five six seven eight nine days wrote the guy’s a great trainer and then he tricks the after hours one night and he loses $9,000 the next day he’s not the same trainer that he was for day one two three four five six seven he’s the trip from last night trying to make back that nine grant that’s not the way it works he has to work for nine days to get that back you made the mistake you traded the stock that you had no idea about you bought a stock that was down twelve dollars and you bought a thousand and then it was down thirteen dollars reward another thousand then it was down to one and you realized you were completely wrong and you sell it and you lose nine grand it happens it happens to all of us go back to basics go back to a hundred chairs even a hundred dollar profit the next day is a winning day if you start shooting for the fences and you start swinging for the fences immediately trying to make that nine grand I guarantee you’re gonna lose another nine grand and the next thing you know you’ll be out of business and this is a great trainer he’s lost complete perception of what I used to do he was a tip trader he was grinding he was a grinder he hit singles he hit singles you know I’m a huge mcfinn Jose Reyes is not a home run hitter he’s our leadoff hitter we wanted to get to first base he gets the first base by hitting singles then he’s still second and then eventually David Wright comes to the plate Carlos Beltran and he brings him home so realize that everyone’s gonna have bad dates everyone’s gonna make mistakes we’re human but learn from them go back to basics go back to what you know don’t increase your trading size don’t go to 5,000 chairs if you’re a thousand chair trader go to five hundred decrease play smaller you really really think defensively the best offense in trading is thinking defensively my guys we really really worry about how much can they lose on this trade instead of how much are they going to make those are the guys who make three four hundred thousand dollars a year consistent these are the guys who have been with me since 1997 and come in every day and they have their game plan and they’re not looking at what’s above and where they can sell it hypothetically they know where their support level is and where they’re gonna get out it takes a very honest person to realize that they messed up and what it took to start over you don’t just start running marathons you gotta walk first and you know you’ve gotta crawl before you walk then you gotta walk before you run and I think that that’s very very very important self honesty self reflection is huge in this business you..

Before putting your money anywhere near this (or even paper trading it with your time) make sure you have your fundementals down. You can download the (free) audiobook Trading in the Zone: Master the Market which will make sure you have a good foundation for everything else.

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Comment (10)

  1. “Self honesty, Self reflection is huge in this business” The best offense in trading is thinking defensively.” “You gotta crawl before you walk, you gotta walk before you run” – This guy knows what he is talking about, you are only right about one thing in the markets and that is when you’re closing out a trade, loss or win, as long as you respect your edge you’ll be alright.



    So basic and simple, but tough.

    1) A good entry (of which you already know to employ.)

    2) A pre-planned exit. (of which you have already built the emotions and discipline for: A profit target, trailing stop, or stop loss.)

    3) To be aware that its just all you, predicting something that one doesn’t really know for sure HOW THE MARKETS WILL PERFORM FROM ONE MINUTE TO THE NEXT — only that you DO THESE THINGS.


  3. It’s true, after a hit, you *really* need to see some green on the screen even if it is done with smaller lots than you normally trade. The markets will otherwise sense a loss in confidence and will eat you alive!

  4. Thanks for the advice. I pretty much had a consistently bad week (small losses everyday). Right now I have to take things slower and try to focus on small trades. It’s really tough to see red for days straight though…

  5. This guy seems like his guys trade short position more than being long. He said my traders know when to exit when there is a support. You dont sell at support, most trader intend to buy unless u r shorty.
    I dont agree with reducing your size once you’re building cash. Your efficiency is a constant indicator to make same % profit. Profit is proportional to your intial asset. The more you buy the more you make. This work only if you know that your efficincy is constant.

  6. Revenge Trading is more dangerous than the 1st Big leads to Bigger Losses..the mindset changes with the 1st Loss..its really difficult maintaining discipline..

  7. I’m a forex trader so I dont know anything about scalping stocks, but how has the event of black box trading effected day traders?

  8. I have been doing well, then I was, I think it will go dow, I think, I think, I went away from technical and got burned I’m a 5.5 month rookie, I was 17 out of 23 trades correct on demo switched to live nadex and got sloppy, few trades just went wrong on a good set up other time I was a kid chasing, shameful

  9. Absolutely true! I am a Commodities trader and have had those days, down 15k in a day only to get in to make it back again which as you mentioned always results in more losses. Getting back to the basics is whats important. hit singles again and start fresh, do not get into a mode of revenge trading.


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