5 Tips For Managing Losing Trades (It Happens To Everyone)Losing trades happen. They are apart of the journey. There is simply no such thing as a trader or investor who wins all the time. All the famous investors or traders you know have LOST many times in their career. It is perfectly normal. Did you know the famed hedge fund manager Ray Dalio lost everything in his 30s? He went broke. He had to start over from scratch.
This post will address what losing trades really mean and how to deal with it.
Before we begin, let us state the obvious:
- Be careful of people who claim they don't lose.
- Avoid people who flaunt win rates or success rates that are simply not possible.
- Losing trades happen to everyone! You are not alone.
Now, let's talk about what bad trades mean and 5 tips for managing them:
Number 1: A losing trade is different from a bad trade
The most experienced traders are well aware of their risk before they ever place a trade. Each losing trade is a small component of a bigger process that relates to a system, plan or strategy that has been thoroughly tested and studied. A losing trade is a calculated event for experienced traders. They defined their risk, position size, stop loss, and profit target. 🎯
A bad trade is very different. A bad trade implies someone risked their hard earned money with no plan or process. A bad trade is reckless and indiscriminate trading. This often happens to new investors or traders who do not yet understand the time, studying, and research that goes into making a rock solid plan. Be sure to remember the difference between a calculated losing trade and a bad trade with no plan or process.
TradingView Tip: there are several ways to get started with a plan, system or process. Paper trading, backtesting and/or working with proficient traders who give valuable feedback are all ways to get started. Don't risk your money without first doing research.
Number 2: Every losing trade provides data to get better
As we've mentioned several times now, losing trades happen to everyone. But remember, losing trades are also filled with insightful information and data. You can learn a lot from analyzing losing trades. 🔍
At the end of each trading day, week or month, experienced traders will analyze their losing trades in detail. What patterns are appearing? What do they share in common? Why did they happen? With this information, a trader or investor can adjust their strategy based on what they've uncovered.
Number 3: Do not let losing trades impact your health
Your mental and physical health are just as important as your financial health. Do not let losing trades impact either of those.
If your system is breaking down or several losing trades are starting to impact your emotions, step away from the computer or phone. Turn everything off and walk away. The markets have been open for hundreds of years and are not going away. When you're ready to come back, they'll be there.
Get up, get some fresh air, and get back in the arena when you're ready.
Number 4: Share your experiences with others
Traders and investors across the globe want to learn from your stories and losing trades. These are invaluable experiences that we all share in common. Social networks allow you to chat, share, and meet people who are going through similar things. We can all learn from each other.
Sure, the temptation to share your winners or act like the best trader who ever existed is tempting 😜 - but it's clear we learn together and get better when we share lessons from the loses. This is where the deepest insights are found, and together, it's where we can grow as a community of traders all trying to outperform the market.
Share and ask for constructive feedback!
Number 5: Keep Going
Markets are a game of learning, relearning, and progressing forward. New themes, trends, and stories appear and disappear daily. The journey is long and it never stops. When implementing your trading plan or investing plan, it's important to do it with the long-term in mind. One or two losing trades in a single day or week is a small fraction of what's to come many months and years down the road. 🌎
Keep going. Keep building. Keep refining your plan. Study the data.
We hope you enjoyed this post!
We hope you learned something new or informative!
Please leave any comments below and our team will read them.
- TradingView ❤️
MSFT trade ideas
Microsoft I Pullback and rise upwardWelcome back! Let me know your thoughts in the comments!
**Microsoft Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future.
Thanks for your continued support!
MSFT Long Options trade 265 - 270 1 moth expiration
Double bottom on the daily, new HH / HL price is testing the daily 50 on the pullback to the neckline of the double bottom. MACD on our side.
MICROSOFT LONGHope the video explains the reasons behind the long. Strong close yesterday signal support at the creek - so stop buy order filled at $251.50 with SL $245 and a Target of $274. 1% of Equity at risk and will trail stop up if I see strength in the price action next week. This is not financial advice so please seek your own - it's a simple trade idea that I have put on. Safe trading!
MSFT, 10d+/13.55%rising cycle 13.55% more than 10 days.
==================================================================================================================================================================
This data is analyzed by robots. Analyze historical trends based on The Adam Theory of Markets (20 moving averages/60 moving averages/120 moving averages/240 moving averages) and estimate the trend in the next 10 days. The white line is the robot's expected price, and the upper and lower horizontal line stop loss and stop profit prices have no financial basis. The results are for reference only.
msft long $232-240msft wave count looks fairly decent. looks like we're getting a swing 1212 count.
would be looking to long between $232-240 zone with invalidation below $219.
set alerts at $240 and daily rsi oversold.
Microsoft growth doubt$MSFT has been down trending following this parallel channel's support & resistance, now testing resistance at $280 which is perfectly aligned with the daily 200MA & 0.5 fib level.
Fundamentally, fear from Q3 results because of interest rates hike & recession doubts, share holders will take partial profits at $280 or a little bit higher protecting themselves from the negative earnings impact.
DXY soaring:
TVC:DXY
MSFT AnalysisPrice consolidated since my last analysis. Price showed signs of change in character on the lower timeframe. If price breaks below 248.10, then I'm expecting price to continue lower following the bearish order flow. If not, we will wait for confirmation for price to go higher.
Long way to goNASDAQ:MSFT
First target is $200, next - $125
for informational purposes only, not construe any as investment / financial / or other advice.
Microsoft A Great Selling Opportunity 🤨👌Trade Proposal:
There is a probability of first tp to the proposed ( 200,00 ) Direction line. So, Traders can set orders based on Price Action and expect to reach short-term goals.
Technical analysis:
Microsoft is in Downtrend and It is Expected to Continue Downtrend.
CHATGPT crashes and Microsoft rejects the 200 day moving averageChatGPT went down world wide at the open of trading Monday causing MSFT to reject a retest of the 200 day moving average.
This could add more structural problems in VOL since hedged equity and option flows are weakest until next week.
My target is 248 today with an extension possible as low as 245.
These AI fumbles are a good sign that AI is still a slave to human mistakes and errors.
See how this plays out but certainly is a headwind to the bullish break higher in tech
NVDA is another AI moving stock to watch if this is a rejection it may add to an acceleration to the downside.
I'll likely get out of short position if ChatGPT comes back online.
Microsoft Corporation [PRICETIMETABLE]Applying curves to mimic exponential slope function behind candle formation.
Comparing to use of straight lines for identifying trends.
Why? Since there is no straight lines in nature or most of physical processes. Market is alive entity which vibrates and application of straight lines is not exactly what I'm looking for.
After new formed candles we will se how market behaved to such obstacles. It's like we're giving the market lead knowing it's nature of price in given time.
Not reversing at this current fib means that it extends to next from starting point as whole fib (Fib expiration). More it accumulates, the more potent gets opposite market incentive.
Alignment of Fib retracement of a wave to previous is sign that it is measured without imbalance.
Mind violet zone or even better mind intersections with normal trendlines which proves interconnectedness of tables drawing tools which are actually based on candles.
Evaluation a wave in terms of the other makes sense because of cause-effect chain emerging in respect to its timing.
I labeled as Education/tutorial because I'll learn from market's behavior myself. Making it public so other people are also part of my journey.
MSFT It was crucial for 248 hold friday and it did. Not surprisingly 135 held on XLK, so it's safe to say they are both connected.
I think we rally back up to close the gap at 262.
If we lose 248, we are headed back to 241 fast
Entry above 248
Target 262 gap close
Stop loss 247
MSFTMSFT – another mega tech stock closed below its 200-day SMA on Friday. The daily RSI also closed below the 50-level. Previously when daily RSI remained below 50 level we saw weak price action as highlighted.
MSFT BEARISHMicrosoft’s (MSFT) MACD in the daily timeframe shows bearish momentum and the price closed below the $251 level. Hence a daily close below $248 could provide short-selling opportunities as prices could retest the $234 support. In addition, an EMA10- EMA20 deadly cross could further support this bearish possibility. In contrast, Microsoft could trend higher if prices closed above $257. Such price action could open the door for a retest of February 2023’s high of $275.
$MSFT at a key area$MSFT at a key area resting on AVWAP from the lows. Do we find value here or establish a down bias towards the lower AVWAP bands?
MSFT moon bound?MSFT is currently consolidating at a previous area of resistance that was just broken. Usually when price action breaks above resistance and returns, resistance acts as support due to buyers who missed the last opportunity to buy low entering the market.
The Clarity of Renko'sThis is not a chart reading - and i'll keep it super short ... this is just a quick reminder that we have many powerful tools that we can use to enhance our analysis and trading outcomes.. too many that we sometimes forget to use them. The above chart shows a great example of that .. I was going thru the daily analysis and thought i should share this note with fellow TV chartists and traders.
The 2 panels show 2 identical charts, same time frame, same date range, same symbol and same indicators .. the only difference, the chart on the right hand side is a Renko
It's surprising to see how clearer the picture is when we analyze the chart and the price/volume action through the Renko lens. Taking for example, the 3 double/triple top formations and how they were expressed on both charts .. which chart is easier to action and trade?
so the quick note here is, let's not forget about these powerful tools - and continue to leverage them as much as possible - Before initiating the next trade, check your Renko :)
Note: most of my indicators and TA concepts are "Renko-friendly" ;)
Notes & comments ?
MICROHARD??We could see a slight uptick after the recent downward movement over the past few days. A double top did print at the $275 zone so we could see a possible downtrend form.
MSFT TA until 2030Facts:
* Bull run started very long time ago
* Monthly quadruple RSI divergence
* RSI overbought territory
* RSI channel decline clearly started
* Fib channel soon will reach 1.618
