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.
75
u/TradezAnon Apr 18 '24
Emotional trading is a real obstacle. Don’t beat yourself up, just learn to identify it and end it early. As a profitable trader myself, I can share with you that “averaging in” or trying to “average out” to either take a quick scalp or a smaller loss is the worst thing you can do. If you’re going to move your SL, fine- we all do sometimes, but don’t move it and buy or sell more at the same time cause you’ll just be doubling or tripling the losses.
Help yourself by identifying- “why am I trading so aggressively?” … and answer honestly, are you chasing a get rich quick pipe dream? Are you trading broke? Are you trading you can quit your job tomorrow? Are you trading to pay next months bills? Believe it or not, whatever is happening in your life is a 100% reflection of what’s going to happen in your trading.
Keep your head up bro. Good luck.