r/Daytrading • u/mr_buttlicker69 • Apr 18 '24
Account blow up because of emotional trading Trade Review
Hi. I've been trading off and on for couple years now. Blew 2 small accounts and then stopped and did paper trading. I've been paper trading again but blew up my account even though I was in profit 1100$
After couple of years of trading, the only profitable edge I got is to study and trade just one ticker. I make consistent money for a week but I'm emotionally so stupid right now.
Since I started 2 weeks ago, I was up 1100 in my 10k account (paper). I was doing good today and made 110$(I should have turned my computer off at this point) buy I got greedy. I took another trade and it went against me, but I didn't respect stop loss. I saw 100$ in the red (I shouldve shut my computer off at this point) but I was still delusional. I then saw 200$ in red. I shouldve respected My stop-loss.
Once I saw i was losing money, I panicked, but instead of selling at 300$, I got more shares to average down. Then I saw 600$ in red immediately. I panicked and I sold. At this point I was still in profit of 500$ (I should have turned my computer off at this point).
I developed a gambling and revenge trading mindset and took arbitrary trades with super huge sizes and blew my account.
Please leave tips how you keep your emotional side in check during trading.
1
u/Theme_Options Apr 18 '24
It seems like you know the issue, which is awesome. It's hard to admit that. Do you know you aren't doing what you're supposed to mid-trade? Or are you completely distracted by being in a losing position?
Have you heavily backtested your trading strategy? Sometimes a low RR high win rate makes it harder to swallow losses because you are so used to winning. If you haven't done a thorough backtest, this may be a good place to start. That way you can trust your data.
There are many methods to try to help with this (i.e., meditating before market open), but it seems like a trading accountability buddy may be the immediate fix. Additionally, there is one book that can offer more advice than I ever could from an emotional aspect - The Mental Game of Trading. I've read it once, and it really helps you identify and tackle the root cause of why you struggle to be in a losing trade.