Here’s a quick look at my 10 best and worst days during my day trading career.
Looking at these days I think there is some important things to point out and that is controlling your losses and letting winners ride. There are some strategies where your win rate may be super high and this will allow for some inevitable bigger losses but this is not the case for my strategies where I am profitable roughly 60 to 65% of the time.
If you have a win rate similar to mine you MUST keep your losses under control, a bad day shouldn’t be able to wipe out your winning days. This takes some discipline and time to get under control but once you understand the math behind it (click here for a simple trading math post), it is necessary in order to be successful.
Lets take a couple of quick notes on my best and worst days here:
- I have had 7 days over $10 000(click here for a simple trading math post)(not one for a while though 🙁 ), and 0 days over -$10 000
- I have 9 winning days over the amount of my biggest losing day
- My top 10 winning days total $130 807.85, it is kind of scary to have so much of your income come from only 10 days but that is the nature of trading
- My top 10 losing days total $-56 555.88, this gives my these trade a W:L ratio of 2.31 : 1
These stats are to show how you have to keep your losses under control, I trade with proprietary software where I am able to set a max loss for the day, if I go above that loss, that’s it I’m locked out. This can be annoying at times but overall I believe its a feature that has saved me quite a bit.
I would urge anyone starting out trading to control losses first and foremost, just make sure you stay alive and in the game. Countless traders can wipe themselves out, blow themselves up being stubborn and not cutting losses. You can’t allow one bad trade to erase months of gains or take you out of trading, stay disciplined set a max loss and stick to it!