This website or its third-party tools use cookies which are necessary to its functioning and required to improve your experience. By clicking the consent button, you agree to allow the site to use, collect and/or store cookies.
Please click the consent button to view this website.
I accept
Deny cookies Go Back
  • Price Action Trading Course – 50% Off Ends 29 June
  • Trading Setups
  • Topics ↓
    • Price Action Trading
    • Day Trading
    • Trader Development
    • Site Map
  • Trading Resources
    • TSR Trading Guides
    • Trading Journal Software
    • Our Partners
    • Support Us
  • Member Login

Trading Setups Review

Trading Strategies, Guides, and Articles for Active Technical Traders

Forex Tester 5 - Software for traders by traders
You are here: Home / Trading Articles / 5 Ways to Bounce Back From a Terrible Trading Session

5 Ways to Bounce Back From a Terrible Trading Session

By Galen Woods in Trading Articles on March 9, 2015

Six consecutive losses. Then, one huge loss and you gave back your entire month’s earnings.

You are paralyzed. You tried to enter another trade.

Order rejected. You do not have enough money left to post the margin. Demoralized.

A terrible session.

Sessions like that bring down your capital, both mental and financial.

No trader is exempted from the market roller-coaster. If you expect a smooth sailing trading career, you do not understand what you are in for.

There is no question that you will have terrible sessions in your trading career.

The question is whether you can bounce back each time.

#1: Identify the Problem (if any)

Terrible sessions do not always point to a problem.

You might feel awful about a trading session with four consecutive losses. But what if your simulation shows a good chance of having six consecutive losses?

Then, you have nothing to worry. As long as the losses are part and parcel of a sound trading strategy, there is no problem.

But when there is a problem, make sure you know what it is. And do not trade again until you figure it out.

The following aspects explain why you might encounter terrible trading sessions.

Unsound trading strategy. An example is low-probability reversal trades that aim for small profits. Review your trading rules.

Insufficient risk management. Add circuit breakers like a daily stop-loss.

Discipline lapses. This is the most common cause of terrible days. Ignoring your trading and risk management rules leads to your worst trading sessions. You might get away with it a few times, but these lapses will catch up with you.

Terrible Trading Session#2: Stop Feeling Bad, Start Thinking Good

Feeling bad does nothing except making you feel worse than before. Instead of dwelling on your past errors, choose to think about future opportunities.

Look forward to the next trading session.

Don’t fear the next trading session. Also, don’t treat it as a chance to recoup your losses. Both are recipes for disasters.

Instead, think of the next trading session as a chance to do better.

Doing better is not about making more money. It means having better discipline and focus than before. Concentrate on the process and not the monetary outcome.

#3: Understand the Failure is Part of the Process

The Market Wizards had their share of failures before they achieved their current stature.

What matters is not how many times they failed, but how they bounce back each time.

Successful traders learn from their devastating losses and silly mistakes. Some of them need more than one lesson, but they never give up learning.

Accept terrible sessions as part of your trading journey. Once you do that, you will realize that bouncing back from defeat is not an option. It is something you must do if you want to be a trader.

#4: Give Yourself a Small Treat

What??

Why should I get a treat after screwing up?

One of the barriers to traders bouncing back into action is the sense of failure. The saying that you are as good as your last trade is common, but not always sensible.

Giving yourself a small treat is a tangible way of telling yourself that you are okay. You can still afford that Chemex Coffeemaker you always wanted.

It is not the end of the day. It is just another day.

So let’s get on with trading. Do it better this time.

#5: Take a Break

Still not ready to bounce right back? Go for a short trip or spend some quality time with your family.

Never force yourself to trade again immediately. Give yourself some time to figure out what went wrong.

Staying away from the trading screen give you clarity of thought. Take your time and condition your mind before returning to the battlefield.

Remember that awful trading days happen to every trader. They do not make you a loser.

With the right perspective and the tips above, you can bounce back the next time you are down.

Read more about Day Trading, Risk Management, Trading Psychology

If Trading Setups Review has helped you trade better, please support us on Ko-fi.

Support me on Ko-fi

Thank you for being awesome.

You can also check out other ways to support us here.

Or, please continue exploring what we have to offer…

How To Trade Continuation with Runaway Gaps

9 Day Trading Mistakes That Will Ruin You

5 Steps to Surviving Losing Streaks in Active Trading

Moving Average Fake-Out

How To Analyze Price Momentum With Micro Channel Trend Lines

Comments

  1. Joy Davis says

    December 18, 2021 at 3:12 PM

    Thank you for the valuable tips. I know that the more you resist any bad feeling like when you have losing trades, the more it grows inside. What I’ve found is that if you welcome the feeling and give it love and permission to express itself fully, it actually grows smaller and smaller. Works every time!

    Reply
    • Galen Woods says

      December 24, 2021 at 9:04 AM

      This is an excellent approach! Embracing losing offers the best possibility to win.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trading Course Banner

Search Trading Setups Review

Recommended For You

3 Epiphanies Of Resilient Traders

Five Top Tips For Growing A Small Trading Account

Capture High Profits with Low Volume Pullback Trading Strategy

9/30 Trading Setup

The Ultimate Moving Average Trading Guide

Three-Bar Reversal Pattern For Day Trading

Don’t Make These 13 Common Mistakes With Your Next Trade

Top Trading Books

Top 10 Volume Trading Books

7 Forex Trading Books To Get You Started

18 Trading Psychology Books To Help You Trade Better

Top 10 Price Action Trading Books

7 Trading Books For Your Library


If Trading Setups Review has helped you trade better, please consider supporting us on Ko-fi.

Support me on Ko-fi

Or, check out other ways to support us here.

Thank you for being awesome.


Get a Free Course Chapter from Galen Woods' Day Trading With Price Action Course [PDF]

Plus, our latest trading guides and tips in right your inbox.

Trading Setups Review

  • Support Us
  • Contact Us
  • About Us
  • Privacy Policy
  • Affiliate Disclaimer
  • Full Risk Disclosure

Learn More

  • Day Trading With Price Action Course
  • TSR Trading Guides
  • Trading Setups
  • Trading Articles
  • Trading Books
  • Site Map

Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.


The website contents are only for educational purposes. All trades are random examples selected to present the trading setups and are not real trades. All trademarks belong to their respective owners. We are not registered with any regulating body that allows us to give financial and investment advice.


Trading Setups Review © 2012–2022

Anti-Climax Pattern - Free Course Chapter

Learn a new powerful price pattern today!

Download for free now.