I've been through a lot of trading losses.
I suspect it was more than I expected; although I've had some great successes and profits as a trader, I've also had my "fair" share of hammerings.
The truth is that things aren't always nice around somebody who trades.
So, how does a trader deal with losing streaks and inevitable failure?
Here is some practical advice I gathered from an interview with veteran trader Mr. Larry Williams.
"My marathon running experience may have been the most beneficial in answering this question."
He continues…
Every marathon I've ever done, 17 in all, had had a place when I raced better and quicker than I ever imagined.
Similarly, there has always been an "equity deep," a moment of virtually no return, no recovery in every marathon I've run.
I'm not making this up. I laid down in the roadway for about five minutes at mile 23 of one run as racers I had passed before (during my winning streak) passed by.
What I discovered about running was that the only way to get out of those dreadful, terrible let-downs was to... slow down... stroll a little... even lay down on the street.
In short, by slowing down and gathering myself, I was able to take up the pace and restart the race.
What do you think? Losing streaks are the same way. When they strike you, they will take a step back, slow down, or even stop trading, but remain in the race.
