With markets barely moving this week, it’s been some tough trading days. These are the most challenging times for all traders. After all, we want to make money but we need the market to move to provide us with profits. So how do you handle the frustration when it seems everything you touch turns against you? There isn’t an easy answer.
Tough Trading Days
First, whenever you have consecutive losses, examine if you are entering too early, late or following your trading plan. In other words, are you following your rules? If not, try to focus on following your rules better.
Second, realize that trading relies on markets and markets can act erratic. With summer arriving, markets tend to move slower, as well. Slower markets are much harder to trade too. Of course, no one likes losing money but in trading you will lose sometimes (also known as drawdowns). Things that I do whenever I am experiencing a drawdown is to decrease my contracts. Then when I see the markets are resuming their normal patterns and my winning percentages increase again, I increases my contracts again.
Third, take some time off. For example, I am leaving on Friday for some time off. The markets will be here when I return. Ironically, we become traders so we can have more flexible schedules and then we forget to take the time off that we deserve.
Of course remember that slow markets typically do not last. By the time you try to adjust your trading plan, the markets will begin moving normal again and you will be slow on entries. Then you will be even more frustrated.
As I mentioned yesterday in one of my youtube videos, keep do what you do and eventually the trades begin working in your favor again.