Coming Back From a Loss

If you follow our blog, then you are definitely familiar with trader Larry Levin, President of Trading Advantage LLC. We have gotten such a great response from some of his past posts that he has agreed to share one more of his favorite trading tips as a special treat to our viewers. Determining the direction of the market can be tricky and just plain confusing at times, but Larry’s expert opinion keeps it simple.

If you like this article, Larry’s also agreed to give you free access to his award winning book.

A friend of mine in the pit had been having a rough time of late when he asked me a typical question among us traders - How do I come back from a loss? Since he had been having a "rough patch" and not just one bad trade, I gave him the following advice that is to be used over a period of time.

First I asked him, "What does your trading journal look like - or maybe you don't have one?"

He didn't think it was necessary, which was his first mistake. It is critical to keep a trading journal.

In my journal I ask myself everyday "Did I follow my trading plan properly? Did I do anything wrong and if so, why?" If I did follow my plan correctly but I lost money, I am not hard on myself. Sometimes this happens! If I didn't follow my rules but still made money, however, that's a problem.

I highlight these days so I never repeat this fatal flaw. One of the worst things you can do is ignore your rules and make money, because then you feel that "winging it" is a good plan. It is not.

If this happens, you have to ask yourself; "Why didn't I follow my rules?" Was it lack of confidence in the system? Fear? Or did my ego want to be the hero that sold the high?" Continue reading "Coming Back From a Loss"

The Trading Journal Do's and Don'ts

Every time I ask Norman Hallett from to "give us more" on a previous topic he's previously covered, he always delivers. What do I mean? Well, about a month ago Norman wrote a post discussing "Measuring your Trading Experience" and within the article he touched on an important part of many successful trader's daily routiens...a Trading Journal. So after many requests from readers Norman has come back to give us the BEST methods for writing and MAINTAINING a journal.

Please enjoy the article, to be notified when the upcoming The Disciplined Trader Intensive
Program will be held visit to learn more, and please comment as much as you can below! We want to hear your journal story...or lack there of!


In The Disciplined Trader Intensive Program, where we train traders of all modalities to be disciplined in their trading, one of the topics we delve into deeply is journaling.  You see, journaling is the most effective way to self-evaluate your strengths and weaknesses as a trader, therefore allowing you to target specific problems for correction.

Here are two very popular basic questions about journaling that keep coming up in our Intensive along with answers that I hope will be helpful for your own journaling:

What is the purpose of having a trading journal?

Continue reading "The Trading Journal Do's and Don'ts"