6 Things I Do When I am on a Losing Streak
Hi, traders from around the world! How was your weekend? Fall is here and the weather is beautiful, at least here in Nashville, TN. I just got back from Gainesville, FL where the humidity was around 150%. I was pretty much walking through water the entire time.
I was staying with a Real Life Trader (Dean C. and his family) and he asked me to write an article about losing. And not just losing on a trade, but 'a losing streak'.Why did he ask that? Because I was on a 0-9 losing streak two weeks ago. Granted it's now broken, but it was rough when it was going on. Here are four things I do when I am on a losing streak to clear my mind, soul, and rescue my trading account:
1. Do something I've never done before: I either go somewhere new, read a new book, play a new sport - something fresh and exciting. It clears the mind!
2. Volunteer and help out: Someone always has it worse than I. These are important words to live by. If I am on a losing streak, I try to consider seriously my situation. I have food on the table at all times (probably too much) and I live in a nice home. There are millions of people in this world who can't say that. Therefore, I not only reflect on what I'm blessed with, but I try to contribute to others in need and that always makes me smile.
3. Watch some motivational videos: There are a plethora of these on YouTube. Many are very good. I probably catch at least one a week, regardless of my trading success, but during a noticeable 'losing streak'I watch four to five a day.
4. Hit the gym: Nothing breaks people out of habits like 100 push-ups.
5. Don't be afraid of the next trade: Remember and understand, some of the best traders in the world lose more than 50% of their trades. If you're 0-9, probabilities are that a win is coming. If you are a 50/50 trader (like me) and you lose five in a row, your next five could be winners. Knowing how to mitigate risk keeps the first five losses small and containable.
6. Don't try a new strategy: You know what works. Keep doing that. Don't try to reinvent the wheel, or you. If you're a professional Real Life Trader, you will have losing trades, losing days, and even losing weeks. You know how to trade. Focus on what you do best and keep doing it.
Thanks so much, traders! Crush your next trade! And until next time, remember, love life, live life and trade it!