How do you handle a trade that haunts you?

Some trades stick: the stop moved and hit anyway, the winner closed early that ran to target, the missed setup that printed. The haunting affects the next trades until it's processed.

How do you handle a trade that haunts you? — drawdown and recovery diagram
An equity curve during a drawdown and its recovery

What do you do with it?

  • the trade you still think about
  • how you stop it colouring new decisions
  • the reframing that finally released it
How do you handle a trade that haunts you? — risk-reward diagram
A risk-reward ratio of 1 to 2

The journal guide helps put haunting trades into perspective.

Background: How to keep a trading journal that actually improves your trading

A journal turns a pile of trades into evidence. What to record, the numbers worth calculating and a weekly review routine that takes less than an hour.

What should a trading journal include?

For each trade: the pair, direction, size, entry, stop, target, risk, the reason for the trade, how you felt, the result in money and in R, whether you followed your plan, and chart screenshots.

How do I calculate expectancy?

Multiply your win rate by your average win, then subtract your loss rate multiplied by your average loss. Measured in R, a positive result means the approach has made money per trade on average.

Read the full guide

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