Hey everyone, Ross here! This week, I had one of those challenging days in the markets that truly puts your trading skills and emotional resilience to the test. It wasn’t just any difficult day; it marked one of my maximum loss days, the first in nearly two months. After a smooth streak of successful trades, facing such a setback hits hard. It’s not just the financial loss but also the emotional toll that makes days like these particularly tough.
I want to share this experience openly because every trader faces such days and it’s important to learn from them. Despite the red marks across my portfolio today, I believe there’s value in dissecting what went wrong, how emotions played a role, and how I plan to bounce back, ensuring these insights help others in their trading journey. Let’s dive into the recap!
Emotional Trading Takes Hold
The day started like any other, with routine checks and strategy setups. The first stock I traded was BENF. It started promising with an acquisition at around $8.15-$8.20 and selling at around $8.81, netting a quick $1,600. Although it faced rejection at the Volume Weighted Average Price (VWAP), this wasn’t out of the norm, and the trade itself was technically sound.
However, the situation took a turn with the next few trades. The next significant attempt was with TCBP. Here, I missed the initial move, bought on a pullback, and quickly faced a $340 loss. It was minor, but it was a precursor to a series of adverse outcomes.
BENF, during the market opening, looked set for a breakout over VWAP. With optimism, I entered with 1,500 shares at $8.65. Contrary to expectations, the stock rejected hard, leading to a substantial stop out at $7.74. I thought a halt was a false signal and added more shares, only to see the stock resume lower. This series of decisions wiped out my initial gains and plunged me into a $2,300 loss.
Breakdown of Discipline
What followed was a cascade of emotional decisions that overshadowed rational trading strategies. An additional aggravating trade came with MI, where I again, mistakenly anticipated a recovery post-resumption and bought 2,500 shares at $8.85, only to watch it plummet to $6.80, exacerbating my losses for the day.
With losses mounting, I traded NUVO in hopes of recouping some of my losses. I entered with a large size of 7,500 shares, expecting a breakout which did not materialize. This mistake compounded my red day even further with another $2000 loss.
Ultimately, I ended the day deeply in the red, down $$6491 across all four stocks I traded. This was a clear violation of my usual trading discipline, pushing past my maximum loss limit, and contradicting all the risk management rules I advocate.
Emotional Impact and Moving Forward
Today, I gave back almost four days of progress, a stinging reminder of the risks inherent in day trading. More than just financial loss, today’s session was a hit on the disciplined streak I had maintained. Yet, if there’s any consolation, it’s that such days, while challenging, also offer rich lessons.
As I reflect, I realize that despite the severity of today’s losses, they remain within the normal fluctuation range of my trading career. It is essential to view these setbacks within the broader context of one’s trading journey. Over the last 30 days, there was substantial profit, punctuating this loss with a reminder that discipline is mostly about consistency, not perfection.
Strategies for Coping with Trading Losses
To manage the emotional fallout of a red day, I turned to a guided meditation focused on releasing frustration and regaining mental clarity. This approach helps put the day into perspective: it’s a single day in a continuum of many trading days. I remind myself that in day trading, resilience is as critical as any strategy.
Tomorrow, I will approach the markets anew, with reinforced discipline and a resolve to adhere more strictly to my trading guidelines. My loss today, though painful, is a single chapter in an otherwise steadfast trading narrative.
Gratitude and Moving Forward
Thank you to everyone who follows my trading adventures. Sharing both the victories and defeats is essential for growth and community support in day trading. For those interested in the day-to-day realities of trading and recovery strategies post-loss, consider joining our trial at Warrior Trading, where we tackle these very challenges head-on.
Today was a stark reminder of the precariousness of day trading and the importance of maintaining discipline. As we close this chapter, let’s remember that each trading day provides a new opportunity to apply our lessons learned and better our trading practice.
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Warrior Trading was founded by Ross Cameron in 2012. Today Warrior Trading is a thriving community of thousands of day traders learning to trade under the curriculum designed by Ross.
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.