Quote from: zonom on June 17, 2019, 10:01:43 AM

Quote from: Mark_R on June 17, 2019, 09:59:42 AM

Quote from: Lunar_FAX on June 14, 2019, 02:32:42 PM

Aw I had a similar story a couple of years ago. Thx God I had good friends to stop me at a right moment...

Yeah. It was a terrible revenge trading. Since then I put harsh limits on my daily losses.

What are you suggesting in case of losses?

That what I was writing as the suggestion to act in case of drawdown in the other thread.

5 SIMPLE STEPS TO RECOVER FROM DRAWDOWN

1) Accept that you are losing. It is an integral part of trading. The earlier you accept it, the more money you will save

2) Analyse. This is what our trading journals for. I often make screens of the trades to look through them and understand what the reasons for the failure are

3) Cut your losses. Part by part reduce the position which causes your drawdown. Make it insignificant for you

4) Having got rid of the losing position, you need the recovery:
4.1) Minimize the position size. It would not be so stressful (if you feel you are in tilt, stop trading for some days)
4.2) Understand what your best strategies/tools/trades/markets are
4.3) Use them only. Be it one trade a day or a couple of days. But it should be confident and perfect

5) Try strategies:
5.1) Scalping
5.2) Strong trend would be your true friend that time
5.3) My fav pyramid trading (increase the position step by step) and reversal (take profits by several steps)
5.4) Manage stop losses (you can use breakeven strategy), but not rush into it, cutting profits. This point should be applied in a very careful way.

Actually, these rules and strategies are applicable in any case. An effective way to cut losses and make more profits with less risks.

May you please explain that pyramid trading in detail?

Sure. This is one of the effective ways to maximise profits and cut your losses. In brief, the position is enlarged step by step, opening more and more positions if the price goes your way. Thus, in case of success you have more profits, and in case of failure you lose what you risk in a current position.

Here is the illustration I find one of the best to explain pyramid trading illustratively.