How do you deal with losses?

[The Geek]

One of our mods was relocating the above thread to this category & deleted it by mistake. Obviously I will now need to take him out & shoot him. See what happens when you pay peanuts.

Anyway apologeis to those who were contributing to the thread, but I'm arfraid it's gone never to return. Feel free to repeat yourselves on here.

[eggman]

One of our mods was relocating the above thread to this category & deleted it by mistake. Obviously I will now need to take him out & shoot him. See what happens when you pay peanuts.

Anyway apologeis to those who were contributing to the thread, but I'm arfraid it's gone never to return. Feel free to repeat yourselves on here.

No problem. It's my fault for putting it in the wrong place (I really shouldn't have multiple tabs of the same site open!)

I just wondered whether there were any tips people could share when dealing with losses as I feel that how you cope with this particular aspect is one of the most important factors for determining whether you'll be a successful trader or not.

For me I try and focus on the loss on why it occurred. I have a set plan when I start to trade but I often deviate from this without even realising.

I think the most important thing for me is to internalize the loss and the reasons for it. I try and accept my mistakes and turn the negative feelings of losing money into a positive expectation that I won't make the same mistakes again.

I also find that listening to uplifting music can help and keeping records at the end of every day can help to put the loss into perspective.

[Scumbag trader]

No problem. It's my fault for putting it in the wrong place (I really shouldn't have multiple tabs of the same site open!)

I just wondered whether there were any tips people could share when dealing with losses as I feel that how you cope with this particular aspect is one of the most important factors for determining whether you'll be a successful trader or not.

For me I try and focus on the loss on why it occurred. I have a set plan when I start to trade but I often deviate from this without even realising.

I think the most important thing for me is to internalize the loss and the reasons for it. I try and accept my mistakes and turn the negative feelings of losing money into a positive expectation that I won't make the same mistakes again.

I also find that listening to uplifting music can help and keeping records at the end of every day can help to put the loss into perspective.

If i have a losing day i try and do something to take my mind off bieng pissed off: go for a walk, go out for a few beers, go to the pool club. If i have a losing race i just forget about it and carry on trading. The more you think about it the more likely you are to do stupid shit and chase.

[jimrobo]

move to the next market and carry on. If its a substantial loss I try and recognise where I went wrong. If it was my error then I obviously am annoyed but try and look at the positive and concentrate on getting back to nomal trading. If I have a losing day which is pretty rare but it does hapen then its not a problem. SOmetimes the markets are just genuinely very difficult to trade. You have to just accept that fact and take it on the chin and come back tomorrow!

[jimmy]

I think this is the single most important question in trading.I have lost count of how many times I have carried big loses in to future races and made it much worse.The simple answer is there is no simple answer each person is different and will handle it in different ways.Me personaly I have found winning in every race every day keeps the green monster away

[ron]

When i am trading and the odds move against me i get out and accept the loss, depending on how much time before the off i will re- access the market be it the same selection or new one and re-enter looking to reduce the loss, for instance lay at £50 @ 5's back £50 at 4.8 = a single loss of £10 or £2.08 over all runners, many times i have done this, re-entered the market and either reduced the loss or ended in profit.

If not i move on to the next race, £2.08 is easier to recover than £10, dont let the red figure get too big otherwise its claw back time everytime.

[scratch]

I find any loss very difficult. Not so much taking a loss if the market goes against me but being red at the start of a race. If there is time I can just carry on no problem. If its big I just tell myself to nibble away and make it less. If the race starts I do find it stressful. I find using the SP option stops me going in-running. Its silly really because when I look at my trading losses at the end of a day they are very small in comparison to the wins - its the psychological aspect of accepting the loss as a cost of trading I haven't accepted. I'm still ploughing through Jibiko's reading list and it is helping!

[YoungTrader]

usually I get out of a bad trade with a 1 tick loss if I didn't have time to scratch it. and then it's usually no problem making up the loss and get a profit on the race anyway.

if I get a big loss and the race is about to start I'll just hedge and move on. don't think about the loss, just get on to the next race or take a small break.

another good motivation technique is to look at your P&L for the day, look at your losses and tell youself that next time you'll be more disciplined and get out sooner, if you had done that today you would have made x more than you did.

in the moment I can get really angry at myself when I don't act like I know I should but in the end of the day I always look positive on the losses and learn from them.

[jibiko]

check this link also, maybe can help

[Talisman]

The way I see it is -

A loss is a loss. You're always going to have them, accept it, they're a part of the caper. Take the hit, move on, you'll get it back in the next trade or three.

The only loss which I see as a genuine loss is one which is caused by a mistake (going in play, not paying attention, leaving a position open). So then work at eliminating that mistake, so it doesn't happen again.

[eggman]

I find any loss very difficult. Not so much taking a loss if the market goes against me but being red at the start of a race. If there is time I can just carry on no problem. If its big I just tell myself to nibble away and make it less. If the race starts I do find it stressful. I find using the SP option stops me going in-running. Its silly really because when I look at my trading losses at the end of a day they are very small in comparison to the wins - its the psychological aspect of accepting the loss as a cost of trading I haven't accepted. I'm still ploughing through Jibiko's reading list and it is helping!

Some good points. The psychological aspects of trading can play some funny tricks on you. I can find that on one day if I make say £200 but at one point was up £500 I'll feel worse than another day where I've lost £200 but at one point was down £500. It seems that how I finish the day has a large impact on how I feel the day went.

That said, trading for me is a largely mechanical process. I rarely get excited or disappointed with wins or losses.

[ron]

If the race starts I do find it stressful. I find using the SP option stops me going in-running. Its silly really because when I look at my trading losses at the end of a day they are very small in comparison to the wins - its the psychological aspect of accepting the loss as a cost of trading I haven't accepted. I'm still ploughing through Jibiko's reading list and it is helping!

Spot which is the main reason as to why some let races go in play, they see a loss on 1 runner and wont accept it over all, i have known others lay then the odds go against them, race goes in-play and they have a liabilty of £100's the odds never return where they started, and it looks like the horse is going to win, still some wont accept a smaller loss and sit there untill its down to 1.01. in my book you have 2 options

loss over 1 runner say £10, because you have backed and laid higher it wins you lose £10 or you back/lay only and have full liablity say £100. of these i would take the £10 or spread it over all... smaller loss guranteed, obviously the £10 is'nt as the horse has to win.
But as i said previously £2 is easier to recover than £10, but £10 is easier than £100. the choice is yours.

[stan794]

Eggman - All i'll say is dont go in play, no matter how often i tell myself that i did it again today and done my whole bank lol, you gotta laugh.

[eggman]

Eggman - All i'll say is dont go in play, no matter how often i tell myself that i did it again today and done my whole bank lol, you gotta laugh.

I hope your bank wasn't too big stan!

All my trading is in play!

[stan794]

£280 mate, you go in play, give me some tips lol, i need em.