Bad Trading Day? Pick Yourself Up and Move On

The Yankees have to take each loss as if it is a meaningless part of a bigger picture, the World Series. As a trader, you have to remind yourself of a few key points to make it through a long season as well:

• As I often tell my traders, a bad day is part of the game. It is just a meaningless data point in your long season as a trader. Huge losses can be chipped away over one or two good days of disciplined trading. Even the best traders have horrific mornings or afternoons. That is part of their season, so why not allow yourself the comfort of realizing that losses can be overcome?

• Mistakes are really learning experiences. Traders are often the first to blame themselves for the mistakes that they made in executing trades or for impulsive decisions. I had a trader who beat himself up over a bad trade involving MF Global. He described the negative and "bearish" thoughts that were flowing through his mind after he finished the work week in the red.
  He felt like he was in a rut with his trading strategy. He needed to hear that he was disciplined, his strategy was sound and that even the best decisions informed by the most up-to-date data points don't always work out the way you plan them.

  I encouraged him to take notes on what he learned that day as a trader so that he could recognize similar trading patterns again in the future. Again, the lesson to him was he did not make a mistake, he was just learning for his next opportunity.

As the summer moves on, remember to think of each day as a means to an end. I know that every day is a battle to make more money or make up for a loss, but focus on your long-term goal. Shake off the bad days, think bullish and enjoy your life.