Hey everyone, Ross Cameron here! Today, we’re talking about something a lot of traders don’t touch on enough — how to lose the right way. You heard me right. We all lose trades. I’m not going to sugarcoat it. Everyone’s so focused on being a winner that they forget how important it is to be good at losing. In fact, being a great loser is one of the most important things you need to master if you’re serious about success in day trading.

So why am I talking about this today? Because I just had a red day after a 47-day green streak (Results not typical). Yep, even after a long run of success, losses happen. But I’m not here to vent. I’m here to show you how learning to accept losses and manage risk can turn those red days into valuable lessons for long-term success.

Acknowledging Losses in Day Trading

First off, let’s clear something up: there’s no such thing as a day trader who nails 100% of their trades. That’s a myth. Even the best of us can’t win every time. My average win rate sits between 65% and 70% (Results not typical), and some days I feel unstoppable. But like today, those streaks do come to an end, and when they do, how you handle it makes all the difference. You’ve got to be ready to manage those red days to keep yourself in the game.

Trading isn’t about avoiding losses—losses are part of the deal. Success in day trading comes from knowing how to manage your wins and, even more importantly, your losses. When I say “be a good loser,” I’m talking about recognizing when you’ve dug a hole, cutting your losses quickly, and keeping your emotions in check.

Recognizing Patterns of Losses and Emotional Traps

Today’s trading session was a classic example. I started with two big losses right off the bat, which can make any trader feel like they’re spiraling, especially if you let your emotions get involved. One of the biggest pitfalls is after a couple of early losses, you start chasing bad setups in desperation just to break even. Once you cross into that emotional, compromised state, it’s a downhill ride from there.

What I’ve learned is that the key is to recognize when you’re in this emotional headspace. Once you do, it’s time to cut back on the risks — fast. The sooner you can catch yourself slipping into that spiral of frustration and desperation, the sooner you can stop the bleeding.

The June Epiphany: Overtrading and Awareness

Here’s something I discovered back in June, which helped me achieve that 47-day green streak. I realized that on losing days, my accuracy plummeted — from 70% on green days all the way down to around 51% on red days. The reason? Overtrading. Yeah, I was churning through trades, throwing more and more at the market, just trying to get back to green.

Instead of sticking to my tried-and-true strategy, I was getting sloppy. I was taking what’s called “B and C quality setups” — setups you wouldn’t normally touch on a good day — just to stem the losses. But going farther into the red, taking more bad trades, doesn’t help. It makes everything worse.

Strategy to Manage Risk Like a Pro

What do you do when you’ve figured out that you overtrade on red days? You adjust. And that’s what I did. I came up with a new risk management technique: start the day with smaller positions.

Here’s how it went down. I began each day by trading with a quarter of my normal share size. So if I usually trade 20,000 shares, I’d start with 5,000 shares instead. I told myself — don’t size up until you’re already up at least $1,000 on the day. This way, any early losses sting less, and I’m in a safer spot if a trade goes wrong right out of the gate.

This method allowed me to reap the rewards if the market was hot, without taking unnecessary big hits if the day turned out to be slow or choppy. It’s about starting with “training wheels” on each day, keeping it measured and disciplined until you’re sure the market’s working in your favor.

The Results? Trading Smarter, Not Harder

After implementing this strategy, I stayed away from those deep, early losses that used to ruin my mornings. Sure, it might mean my first trade or two will make me less than they could if I went all-in, but it also means that I’m not recklessly taking huge risks when I don’t yet know which direction the market is going.

By trading with smaller size initially, even on days when I ended up red, I didn’t go too far into the hole. It’s easy to prevent panic when you’re not bleeding thousands right off the bat. That’s essential when you want to trade long-term.

Keeping Your Cool on Red Days

Today’s red day was tough, but it was also a reminder of how the strategy works. I took a $5,600 loss, which is slightly above my daily max-loss limit. But more than that, I walked away from the session knowing that my strategy kept me from losing much more. I’m heading into tomorrow feeling prepared to stick to the plan and recoup those losses the right way — with discipline.

In day trading, it’s not always about winning big. The key is to avoid losing big. Learn how to spot when you’re emotionally compromised, downsize, and most of all — maintain discipline.

Final Thoughts

Look, losses are going to happen. The quicker you accept that, the better you’ll manage those losses when they come. The key to being a successful day trader isn’t just how you win — it’s how you lose.

Tomorrow is another day, and I’ll be logging back in, sticking to my strategy, and looking for the next opportunity. If I leave you with one takeaway, it’s this: don’t aim for perfection, aim for discipline. Stay focused on the process. Thanks for reading, and happy trading!

Stay Connected

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

You can learn more about me on RossCameron.com and Tirekickers.com

Check out my articles on Business Insider and Entrepreneur

Make sure to follow my YouTube Channel

Check me out on Facebook

Watch behind the scenes on Instagram

Stay connected with me on X

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.