Should I quit the stock market now due to a heavy loss ?

Want To Learn How To Trade. Take A Free Trial To Our Live Trade Room . Click here for details

This was a recent question asked on Quora. I figure many traders have felt this way one time or another so I decided to share. Below is the answer. For the original question click here

Q:Should I quit the stock market now due to a heavy loss ? I made a heavy blunder yesterday and hopefully going to get a solid loss more than Rs.18,000 due to short delivery of Kiri Ind scrip . I have lost more money in 1 day than what can earn in 1 whole month. should I quit stock market permanently ? I don’t know how to cope with this situation.

A: If you are trying to get rich overnight- yes. If trading is truly what you are and want to be the answer is no. No matter what you chose to do in life you will have setbacks. You will have times when stuff looks pretty dark but it is in these moments we learn the most about ourselves, our character, and what we truly are made of.

The one and only thing you need to do here is learn from this mistake. All of us traders get hit with a big loss , even the best of us. The difference is professionals learn quickly and don’t make a habit of repeating them.

When you get a moment sit down and look through this trade ( if you haven’t already) from these 3 viewpoints ( this is what we teach in our live trade room)

Idea

Execution

Management

First the idea- Outside of the loss was this a good idea? Meaning was this a set up you have learned and is part of your trade plan, or was this a guess? If its a known set up and you had good reason to take the trade, weather or not you lose money the idea is legit. If its a random guess or a hunch you have problems.

Second the execution- Did you enter the trade where you wanted to or did you chase it? Many times the downfall of a great trade idea is a terrible execution.

Third ( my bet this is where you went wrong) the management.-Successful traders are not hot stock pickers or people who try to “ beat the market”. Successful traders are great trade managers. There is always a time before you took max loss when you said to yourself “ this trade sucks” I mean you knew but you let it go. I’m not being critical, I’m speaking from experience.

Find out which one of these you dropped the ball on and fix it for the next trade.

Im now 18 years deep in my trading career and although I have made a healthy amount of money trading I also had my man parts handed to me on several different occasions. I’ve looked myself in the mirror many of times and begged myself to quit, questioned my will, lost many nights of sleep, felt helpless, and felt unable to cope as well. However, I stuck it out and Im glad I did. If you truly want this you can do the same. you are stronger than you think you are

Doug

Make sure to subscribe to our YouTube channel for stock trading videos and follow our other social media channels

Twitter: @thelincolnlist
Instagram: dougrumer_thelincolnlist
Facebook: TheLincolnList