Losses are part of trading. The damage usually comes from what happens next: bigger size, faster trades and abandoned rules in an attempt to win the money back.
Signs you are on tilt
- You open a new trade within minutes of closing a loss.
- Your position size is larger than your plan allows.
- You are watching profit and loss instead of the chart or the plan.
Habits that help
- Set a daily loss limit and stop trading for the day when you hit it.
- After any large loss, take a break before the next trade.
- Write the loss in your journal with the reason, before doing anything else.
- Trade a fixed size, so emotion cannot pick the size for you.
The goal is not to stop feeling losses. It is to make sure one bad trade does not turn into a bad week.
This article is for education only and is not financial advice. Options involve risk and are not suitable for every investor.