So, how do you get un-stuck from a trading losing streak?
Take the next trade.
Do not stay under that dark cloud forever – or until your capital runs out. The best way to regain your confidence is to face your fears, keep moving forward and take the next trade.
Think of winning at trading like winning in sports. Thoroughbred horse jockey Steve Cauthen once lost over 100 races in a row. Northwestern University once lost 34 consecutive college football games, and Andre Drummond missed 23 of 36 free throws in a basketball game – a record for ineptitude.
How did those athletes not lose their confidence? Why did they not quit for good? Simple: They never stopped trying. They pushed through feelings of despair, hopelessness, humiliation and regret. They all recovered eventually.
Keep in mind that you are not the only person who has ever been in a trading losing streak. During some of my worst slumps, things got so bad it would make you cry. In fact, you can read some of my stories – and the stories of other traders – in my free ebook, Trading Stories from the Trenches.
Remember: when you are stuck in a trading losing streak, keep trading. Look for smart trades, and practice good risk management. Do not get overwhelmed. Do not put yourself in a position of taking excessive risk.
When I’m in a slump, I think of TastyTrade’s Tom Sosnoff. He says, “Always take the next trade.” That next trade could be the one to break your slump. It may be the start of a positive streak. It only takes one!