How to Handle Those Miserable Trading Slumps and Large Losses (Top Senior Prop Trader Teaches You)

Shark, perhaps the best trader at our prop firm, shares how he handles those painful, but inevitable, trading slumps and large losses. Learn from SMB's best traders at this webinar bit.ly/334M5gN
#PropTrading #smbcapital #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...

[@Stockspotify101]

Shark: "Best thing to do after a large loss is to book a green day, book a couple of green days". So true, week before last I took a 12k loss on a Monday, didn't panic and was green each day the rest of week. Ended up a solid green week for me. If you acknowledge the mistake & address the mistake w a corrective action plan, it seems to make a difference mentally for me. I was surprised how fast that week turned around.

[@jamespenny9482]

@@johngod1836 John God?

[@christophermurtagh345]

what does he mean by book a green day?

[@pf5908]

@@christophermurtagh345 He means have a profitable trading day.

[@IsaacSMILE]

@@christophermurtagh345 He mens go book tickets to see Green Day play and get fucked up.

[@TwiztedHumor]

Excellent. Thank you for explaining your method

[@LivingTrancefully]

Being in drawdown is a part of the game. Don’t always try to get back to your career high water mark with each day, or even each week. Just wait for those no brainer trades. I find my largest drawdowns come after huge winning streaks and I get sloppy due to ego, and trading larger on the setups that are still profitable, but have less edge.

[@LivingTrancefully]

M Last - yes that is the most efficient way to trade, if you can manage to keep your mind right. I both swing trade and scalp along the way to the swing target.

[@LivingTrancefully]

M Last - I am I a drawdown from 69k to 63k but just recovered a drawdown from 38k to 20k... I swing large size with small accounts and then I restart. It helps me from sizing too large, if I was to have 100s of thousand in the account.

[@LivingTrancefully]

M Last - that’s smart, trade smaller when you aren’t seeing it as well, and slightly larger when you are trading well. All good traders would agree with that!

[@jamespenny9482]

@@johngod1836 Ok God, I'll get right on it

[@Stbuster31]

That's exactly what happened today with me. Was up 20% after two weeks of hard work and then lost 22% today getting greedy

[@nevinkuser9892]

My hardest thing to get comfortable with is exiting losing trades quickly. Accepting the red is hard. That right now is my biggest challenge, removing the emotion from taking my stops. I can't wait for the day when I don't feel bad taking stops.

[@brewdog8568]

I was up on the week today but down on the day I wanted that little bit more and got spanked never again follow your rules or you will lose 🙌

[@Andolem]

I am hooked to your videos, I been watching them day and nights.......It started to shine a light on me, thank you and keep them coming.

[@sponsormade7617]

Great to see that trading slumps happen to the best. Amazing content once again SMB.

[@nasdaqhustler]

Shark being one of the biggest traders at SMB, I love hearing his thoughts.

[@mbellafiore19]

me too! I was in the room taking notes as well.

[@satoshigerbil8789]

Oh, you lost 300k one day... that makes my $4.74 loss today not feel to bad.

[@mbellafiore19]

#perspective

[@Specialkay1]

Bro I'm glad this comment was here. literally stopped the video just to find it lmao

[@myslvbmwable]

Thank you guys for another great video! I am finding these videos to be very helpful. I just wish the firm I trade for was doing something like this. I find that when I go through drawdowns studying the basics gets me out of it. When I have a winning streak high, sometimes my view of the market gets a little tainted and I want to increase my size. Reminding myself that I have to slow and steadily increase my sizing has always brought me back to reality. As for the technique I choose to take when I go through a drawdown, I gravitate more towards the sniper mentality and trade less. I've learned not to chase after profits especially when I've already taken a loss.

[@college10is]

Love these videos. This is officially my favorite KZbin channel

[@smbcapital]

Glad you enjoy it!

[@douglasgantt9548]

Thank you for this video. Psychology is more important than the trade IMO.

[@mattbella12]

I maxed out my daily risk limit today getting caught up in fake breakouts and getting stopped out. I always come back to this video when I am in a mental slump over a bad day of trading. Listening to Shark helps me refocus.

[@nemanjastankovic941]

You folks are simply amazing. Thank you so much for this super-useful content.

[@MH-bp9nc]

Great video and by far the best. Thank you for sharing your thoughts and talking through the thought process when going through a down phase in trading.

[@billfranz4488]

Really good masterclass! Tnx!

[@brrcd-qz6ur]

I hear a lot of what I’ve learned and practice from what he tells in this video. As a scalper, getting back to the basic processes, scaling down, slowing down and resting has always been the answer. Thank you, SMB!

[@smbcapital]

Great Vinicius!

[@brendan7258]

As always, fantastic content. Thank-you

[@andyatmosphere]

I’ve been waiting to catch this episode!! 🙌🙌

[@smbcapital]

hope you enjoyed :)

[@_jamesbradley__]

Excellent, solid, and disciplined process. Thank you for the commentary. I appreciate your generous vid. 😎👍🏻

[@mbellafiore19]

you bet James

[@Trader101]

Shark should have his own channel. Great video so far Thank you!!

[@mbellafiore19]

he certainly could. thxs!

[@jasonknotts1854]

He's probably not allowed...he knows too much lol

[@wandabrowne8313]

IKR!

[@10ksubsnovids]

The worst feeling is when you lose your entire initial investment

[@sucktater6242]

Man ts almost happened to added 200 back im still pretty fresh. How is ur trading going

[@jtjt8463]

Thanks shark and mike for this one- I bankrupted my self late 2018- 200k-AUD- bought btc top/kept blowing up -Have been studying ever since. It,s only in the last few weeks I,m ready to try some setups with a 1k account to get some hard data on my self. Shares like this help me add to my risk management system. Highly appreciated. I don't know where beginner traders would be without you guys.

[@peachie610]

True disposition of top trader, just listing to him explain things made me calmer. thanks for what you guys do Shark and SMB team.

[@mbellafiore19]

yes equanimity is a good characteristic for trading

[@ClownTrader1]

This has honestly been the most helpful video you guys have ever made.

[@smbcapital]

awesome! glad to hear Bill

[@bpenguin]

Thank you for this video. I am going to size down and focus on putting together a string of positive days. Currently in a -10R drawdown.

[@boogiejonz]

Risk never goes away, so I'm going to size down and work on my attitude toward loses.

[@rodrigomorales5191]

Been having a loosing streak ....this video's on point. Thanks

[@kennichi89]

i took a semi big loss today and was slightly undisciplined. I followed every textbook advice, go for a walk, meditate and reset, read my plan/checklist, take sniper trades. i even watched this video to remind myself. haha Made 1/3 of my losing day back. Big win overall on the week. Thanks for the vids.

[@smbcapital]

Good stuff GoSu, we all have those days now and then. As long as you stay in the game to trade another day. Tomorrow is always a new day.

[@angelkalvi]

Thanks for this amazing masterclass!! Learning to keep the risk managed and avoid to revenge trading. So hard to get the emotions controled..

[@mbellafiore19]

you are welcome Angel

[@simontherrien4169]

THANK YOU FOR THIS...

[@tuckebarry]

Thank you so much for sharing this gem! Shark is a baaaaad man!

[@mbellafiore19]

you bet Tony

[@freedomtrading5009]

Love your videos! I’ve learned so much from your firm!

[@mbellafiore19]

gr8 to hear that

[@LivingTrancefully]

A treat to hear from Shark; always. I take many small losses but usually get back in if the setup presents itself again (it was a stop hunt). In the past I wouldn’t get back in, I thought the trade was invalidated (and it wasn’t always) and that would kill my PnL.

[@lyrelprice5739]

That has been my main problem too

[@mbellafiore19]

indeed a treat for all of us!

[@neilhess2518]

Thank you for this. I have had a lousy few days. Not a single green trade in three days. I have been trading much smaller, thankfully. Looking forward to this slump ending.

[@eugenesmb5741]

Golden! Thanks for terrific learning content!

[@mbellafiore19]

you are welcome Eugene!

[@Gigi-bn3ro]

Pff golden course

[@huntfortrades6883]

Great information and advice

[@omphilemataboge7746]

I want to dive into the ocean with shark. Avoiding the material lifestyle that motivates one to trade made me enjoy trading and seek traders who speak sense and educate viewers about this interesting underbelly of the global economy. Much more interesting then politics that affect economies and citizens. 🇿🇦

[@0xD201d]

I like shark's idea of just getting green after big losses. Big bad trades have such a negative impact on our psychology that can affect us on our next trades, getting green again helps get your mind back in the right place where it needs to be.

[@greges7867]

thank you for sharing such insightful video! you guys are the no #1 in this industry! please more Shark and SWang video in the future :)

[@mbellafiore19]

we will try thxs for the feedback. it helps us improve.

[@jeanpaulfelix4095]

been through 2 slumps. They both improved my trading immensely. Find a way or get a job.

[@LostOneTrades]

Very good video! Thank you!

[@mbellafiore19]

you are welcome

[@raysontan1021]

When you’re not trading we’ll, it’s because of market environment changing. After the loss streak, be a sniper, cut losses and aim for no brainier trades with smaller risk

[@als1023]

Big Loss = Trade smaller and use my scalping type strategies, to get me in and out with very tight stops, easier trades to identify when patient. I need the confidence rebuild as soon as possible, and the confidence to build confidence, if that makes sense.

[@smbcapital]

makes perfect sense! Those small wins can really help you get back in it

[@willbobig]

I can attest to stepping away for a bit and scoring a win in the simulator can definitely have a positive impact.

[@benonyt]

Thanks guys. This was good stuff

[@smbcapital]

You bet!

[@olokunsalamu5970]

Slow down, size down & just be green.Thanks for the videos.

[@mbellafiore19]

you are welcome and thxs for participating Alokun

[@TheArtOfTrading]

Fantastic video guys, thanks for sharing this discussion. Shark is a good man, I agree with every single point he made. Trading has made me a better person, and the more care I take of myself and my personal life and the more I focus on improving my self-awareness and self-discipline, the more money I seem to make. Trading truly is the best job in the world. Please keep this motivational and inspirational content coming SMB!

[@samuraisom636]

Thanks for your RVOL code man! Has been a game changer for me...😊

[@TheArtOfTrading]

@@samuraisom636 Hey no worries brother! Glad to be of help, keep killing it :)

[@ehudkrispil]

Thank you for sharing your experience and being my trading community (in a country where most don't know what trading is) To your question: Lowering size, sniper mode and sometimes putting my self on a demo after not respecting my rules

[@mbellafiore19]

good idea

[@nickthewinner2194]

slow down & size down + have the positive day on the high odd setups

[@zekeatchan]

Been having a terrible trading month with drawdowns each week. Looked back at my successes and realised it came from slowing down. I was trying to speed up the past few weeks and trade the faster timeframes thinking I could make more profits. Today I decided to slow down and my PnL results were positive and made up for an entire week of losses.

[@mbellafiore19]

important observation by you

[@tayronachan]

Every couple of weeks my account size/growth seems to get stuck in a range for a week or so, bouncing off what was prior resistance and now support I guess, and testing new highs/resistance. hmmmm, never thought of it that way. I size down, and slow down after losses. >very small account

[@sanjeevasrinath1557]

In such slumps, as I 'am going through right now, I have begun to slow down and size down on my new trades. Also be more disciplined with stop losses.

[@smbcapital]

good! hope that is helping for you!

[@sanjeevasrinath1557]

@@smbcapital yes, that is helping me very much. Have begun doing well, by betting against the market. I have attended the webinar that is listed in this video today, I liked it very much. It’s glad to know traders like me are out there, also liked the strategies you have outlined. I follow the same pre-market volume to determine the movement in a stock. I double it up by placing strategies along with dark pool trades print.

[@ulkem]

Today I took %15 loss on a three times more than my full size. Fuck up this big hurts your feelings so profoundly that you just end up being confused. I know it's gonna be fine in couple weeks, I know I'll figure out what I've been doing wrong and I'll make adjustments... but man, right now, I'm legit tearing up.

[@niggasaurusrex9482]

Feel your pain man hope everything's all good now brother

[@discgolf85]

Very good thank u

[@mbellafiore19]

you are welcome Jim!

[@zillionairesclub2983]

losses and being in drawdown is part of the game, just keep it in the range previously set by trading plan, smaller positions and many of them is the best

[@mbellafiore19]

thxs for sharing

[@ericavila8822]

how can I access your In person trading classes.I've been looking all over NYC and it's been surprisingly hard.

[@chr971]

Hi Bella, can we please have new video with Shark, especially about how he navigated 2022? Thanks!

[@jackfortune5820]

I heard about Shark's name a lot in previous videos, very nice to see him in the video. I look forward to listening to more of his stories, success and failure. Thanks

[@mbellafiore19]

yes we actually have been trying to shoot this for a few months but with earnings season he has not had time. it was a special treat!

[@robert_redd1528]

just took my biggest loss on the small account. thanks for the advice things im going to do next time. call out my plan outloud and shut off my phone entirely for my time trading. someone told me it's just like a job. time to treat it like one after three weeks in.

[@artrilliance]

I'm going to follow my rules. $500 entries, increasing after a 5% rise in price by size 1/3rds of $3,000-$6000 per trade to reduce risk of loss of capital and weigh the risks over the potential, first. Thank you for the video!

[@smbcapital]

good luck!!

[@louisvuittondonvg9040]

What a beast Shark is. Hope to trade alongside him

[@mbellafiore19]

smbcap.com/careers

[@kennichi89]

literally going through a drawdown right now and im looking for as much information i can find online to implement.

[@vanbach852]

Hope to hear from Swang next. Certainly the top 2 must have different input or value to share

[@vanbach852]

@@danfather I'd love to know his avg hold time per trade.

[@mbellafiore19]

thxs for the suggestion. we will try Sir

[@darkboulder]

10:21, is that Ryan who's asking the question? I learned a lot from his videos the past year.

[@smbcapital]

yeah that's Ryan

[@DrDLL99]

@@smbcapital Is he single? Asking for a friend

[@kernel21215]

I'll start with slowly adding green days, with trade play setup recorded, named and scored. Gradually increasing the number of shares based last 15 days performance.

[@aaronnorton2006]

I typically slow/size down, first, then settle into "sniper mode" to get my win rate back in shape. Once my Kelly Score shows significant lift, I begin to increase size and hunt for larger profit zones.

[@mbellafiore19]

good plan Aaron! thxs for sharing

[@kevinsayan190]

I second that.

[@el-sig2249]

I'm always in sniper mode! helps me avoid too many large losses.

[@shanetackett8276]

Shark please make a channel teaching how to trade.

[@johnreed3135]

All in for game time will tell

[@ToTheMoonParty]

size down and get a green day works for me.

[@cosmo1kramer]

What is a c or b day. 8.56

[@quantumtimelines2846]

I'll go long until I know better and I'm going to play with trailing stops when I have a wiff of wanting out. ???

[@tinashegwatiringa98]

SNIPER MODE BABY!!!

[@erfho8y]

For whoever is wondeeing which stock theyvare talking about in this video it's $BYND

[@smbcapital]

Thanks for that! Yes it’s BYND.

[@henriquepacheco27]

Shark = teacher

[@user-ti4bl4cz7l]

Be very very of making sure you do not trade while on tilt.

[@andrewjankowski5153]

QCOM MAN!!! I SAW THE SHORT SETUP WITH THE GAP UP EXHAUSTION!!! I GOT PUTS AT 93.50 BUT SOLD OUT! WUSSING OUT OF MASSIVE SELL OFF! ANOTHER ONE THAT GOT AWAY FROM ME!

[@mbellafiore19]

next time Andrew

[@frankd1156]

How to follow Shark?is he on Twitter?

[@stefovijak4582]

I am definitely going to size down to 100 shares maximum and get big only on my sniper plays.

[@W8aMinuteG]

God, that's exactly what I needed to hear, I just started trading in October and had some success but this week I gave back most of my profits 1 day after another. I am going to listen and size down and take singles not worrying about getting back to were I was. I am waiting to hear more about that ridiculous BYND trade from Shark! Such a pleasure to hear his thoughts on trading! Thank you!

[@mbellafiore19]

I think he said it was his best trade ever if I heard correctly

[@MohdSahil-rm7cs]

@@mbellafiore19 Would you mind telling what the trade was?

[@Miamiapocalypse]

why not both

[@shrz9857]

So im trading on and off from Simulation to live for 5 months. I know my niche but i seem to have a hard time to walk away. 90% of my trades start of with me in the green. However, i see that the stock keeps going higher which leads to me taking another trade and me finishing the red. I have a hard time to walk away from being green or from over trading. My questions is, roughly, what is the average time a new trader may take to become consistently profitable? I heard it can take 1 year and that can be the average for many. Thanks.

[@paulcampbell1596]

it took me 5 years and a horrible divorce because i would not stop i was determined to learn it comes with a heavy price tag probably lost well over 60k learning and even now everyday the Markets teach me something new its insane. The expression "tradings is the hardest way to make easy money" is so very true. Good luck your need it...lol

[@mbellafiore19]

it depends on many factors- resources, talent, market, style. but there is a very real learning curve for all

[@stormtraders]

Overtrading will get less the longer you trade. Once you get burned a lot and get big losses from that you will learn to be more picky, and after that even more picky. I latetly have a lot of days when i don’t trade, all the while when people around me are selling left and right. You have to be very meticulous in your plans otherwise you get random results. I can tell you now that one year would be very unlikely to be profitable. 3-4 years or longer is more reasonable. You need that screen time. And controlling emotions is a big part that many overlook which is why 90% of traders fail. If you don’t approach it the right way. You burn out all your “mental” capital. All the best

[@myles5158]

@@mbellafiore19 mike how do I get in your firm? I want a shot.

[@colinmaharaj]

When you're in doubt get out, sounds good but the problem is the traders hold on they have no doubt when they should have doubt.

[@sams5708]

'What is your best setup Study it, see the proof that you make money in it & Hit it harder everytime it comes up'👌 Thanks for this I always felt that my A+ setup might ditch me forever someday That made me look out and find various setups, everyday In the process I found new A+ setup Which made my previous one a B New traders problem I guess. Amazing video 🙏

[@smbcapital]

thx Sam!

[@Okayand33]

Being a sniper is kinda like the mechanic; steadfast, vigilant, and cut-throat Nice!😁😊

[@mbellafiore19]

indeed

[@jeffshackleford3152]

Would it be possible for Shark to do a rundown on the TSLA split days?

[@smbcapital]

We actually recorded Sharks take on TSLA during the split. Not sure if we are releasing to the public or keeping internal.

[@jeffshackleford3152]

@@smbcapital I understand wanting to keep that close to the vest... That was one of the more important trading days this year, so I wanted to see how experienced professional traders did it.

[@alanbeshore943]

I like the sniper metaphor. I took it to mean patiently waiting for the perfect shot, then executing with precision. Im pretty sure that is what he meant.

[@absoluttchamp]

The sniper analogy is older than the Bible

[@mbellafiore19]

yes patiently waiting for your setup and trade

[@matthale5388]

this guys personality is very similar to mine - i even look a little like him. I would love to see more videos of him and his trading style.

[@smbcapital]

we'll try our best to get shark to get a video up again

[@lifeonearthasitisinheaven2919]

I took a 30,000 loss this week losing over half my account. Still a bit sick to my stomach but I’m planning to take time every weekend to write a trading plan for the week.

[@10ksubsnovids]

It’s been a year where are you at now?

[@raysontan1021]

Scale down. Slow down. Rest well.

[@smbcapital]

yes!

[@Mo_998]

How to handle large losses? Before you decide to trade learn to manage risk and place stops :)

[@mbellafiore19]

yes!

[@HobokenRealEstateByDean]

Whats this dudes name?

[@fabianhidalgofinanzas]

Sniper mode

[@lightkirsche]

That is why this guy is a team lead

[@lightkirsche]

I am on a mission to seek all known items of a bag of tricks so help me God. Show me God so that I can dynamically rank them as they appear before my eye each and every trading moment so help me God. Amen.

[@ToTheMoonParty]

shark vs max madaz money - who wins?

[@smbcapital]

haha maybe Shark

[@GrowthMindsetProductions]

*Do* *what* *makes* *you* *happy* - *Life* *is* *too* *short* *to* *not* *enjoy* *it* =)

[@smbcapital]

facts

[@GrowthMindsetProductions]

@@smbcapitalhaha thanks =)

[@vcheung11]

I would slow down n regroup, the market is always there, if I am in a losing position n stop loss is hit then get out, think, n go back into the same share if the set up present itself again, never argue with the tape, egos means nothing in the trading world n definitely one sure way to get you to the poor house

[@pmcllc1]

Sniper

[@collins_channel8643]

legend has it mans is still high

[@smbcapital]

haha - chill mode all the time

[@Yetified_Mayhem]

Is it cashmere? I wonder how many can learn how to not dig a deeper hole with revenge training without experiencing it. Seems every trader has made all the classic mistakes newbs go through. I know I have, even with great traders all over the internet telling u not to do what you're doing. I believe that's another huge advantage at SMB having someone literally looking over your shoulder to keep tabs on the situation. Its a lot harder to just walk away from the screen then it sounds. I just wonder if its necessary to experience all the growing pains of a trader to become great, or if you can squeak by successfully without experiencing all the painful lessons.

[@jackfortune5820]

I think I heard Ryan's voice in the Q&A session. :)

[@mbellafiore19]

you did