Continuous loss in F&O trading

All,
it been close to 2 years now, I am option buyer, My loss is increasing but unable to turn profitable, week on week, month on month turning into loss only, after every big loss, gave up trading only to join after week or two again ended up in big loss. unable to give-up because of intent of recovering big loss made so far.
Not sure, should I continue to trade or stop F&O for permanent.

Why?

Continue it bro somebody has to lose for somebody else to earn🙂

2 Likes
  1. Stop trading else your losses will keep increasing. Markets dont care about your intent. You will keep losing more and more. Mindset of trying to recover losses is dangerous in trading.
    Why do you expect to make money when all evidence you have shows that you dont have something that works.

  2. Almost everyone loses for first few years. So trade with very small capital only to keep losses minimal. ( or don’t trade … ).

  3. No guarantee of success even after multiple years. But its possible.

  4. Search this forum and you will find many people like you. Some did not take advice and kept losing more. Make money outside markets to recover.

  5. And if you really like trading then experiment your ideas over 5-10 years past data and forward test and take it slow. It will take maybe 2-5+ years to get a grip on things assuming you don’t study garbage.

thanks bro, very informative…

thanks, my biggest un-controlled emotion is revenge trading after seeing loss trade or reduced profit, but only adding further loss and finally closing day with BIG loss.

yeah, most people say that. Just understand -

  1. Even if you overcome it, you wont make money. You will lose more slowly. Many times people seem to think that do this one or two thing ( usually psych related) , and problem solved. Nope.

  2. Psych issues often exist because you have no edge and no proof of edge. Mind knows.
    One you have data to confirm long term edge and you see it working slowly with small capital and start scaling it up, then it reverses and we can become afraid of breaking rules instead.

  3. Most people don’t listen to this, but you need to test. Take last 5 -10 years of data, and test your ideas without changing plan. Most of the time, it wont work and you will not waste money live. If it does, then we need to test it in live markets with small money and verify that its working live too. Only then we can scale up and that too in steps after making money in previous steps. Backtesting also gives you some idea on risk and we can position size based on that.
    Also, trading with discretion is incredibly hard because its very hard to test and very hard to deal with daily ups and downs. Systematic trading can solve some of this - but its not magic and you still have to deal with everything else and work and verify before committing large money.

  4. Trading works in probabilistic way - even once we have edge. We have to internalize this. I have not read this, but ‘Trading in the zone’ book might be helpful for this from what i understand.
    I learnt from here, over few years. But there is no quick fix and i don’t trade like him, we need to adapt.
    https://adamhgrimes.com/

  1. Finally, most people lose. Perhaps less than 1% make any meaningful money. So its probably much better to not trade for most people, esp once you know you have no control over emotions and are reckless with money. No one should risk significant capital when learning to trade, you are gonna lose !

if options doesn’t working for you , Try swing trading

Stop FnO and try in Cash EQ market,… and keep journal your trading activity. and review the trades after exit,… still your not profitable then take break start analyze your strategy,.

thanks, I will check that

thanks