Futures For You by Dan OíNeil
DONíT BE A SORE LOSER
Iíve been trading futures for a while
now, and Iíve followed all of the standard
advice about doing my research
and setting up a trading plan. However,
Iíve found it difficult to sit by when the
market starts to turn against my position.
My instinct tells me to take emergency
action and do whatever it takes
to get right again, but most of the ďexpertsĒ
seem to agree thatís a recipe for
disaster. In general, what is the best
way to handle a losing streak when
youíre right in the middle of it?
Welcome to the club. Every successful
veteran trader has experienced an
occasional run or two of poor performance
in the futures markets; you canít
expect to operate in these markets without
a few valleys to go along with the
peaks. In truth, plenty of traders wind
up with more losing trades than winners.
So how do they survive to trade
another day? Itís a simple, unglamorous
answer ó by maximizing profits on
their winning trades and minimizing
losses on the losers.