Hey everyone, Ross Cameron here! Today I’m going to talk about something all day traders have to face at one point or another—a Max Loss Red Day. Yeah, it’s been one of those weeks where nothing feels like it’s going right, and it’s time to share the pain. You know, trading is 50% skill and 50% mindset. We all talk about it, but putting that into practice when things go wrong? That’s a whole other beast.
For the past few days, I haven’t been able to get out of my own head. I’ve made some bad trading decisions, mostly driven by emotions—FOMO being the main culprit. And while I’d love to blame COVID for my wild trades this week, or even June (my dog who was giving me side-eye), I know the truth. It’s all on me, and it’s time to break it down. Just because you’ve been trading for years doesn’t mean days like these disappear.
Trading Psychology: It’s a Mental Game
Let’s get into the psychology side of day trading. You can have the sharpest strategy in the world, but without the right mindset, it’s not going to get you far. Day trading is not just about analyzing stocks or reading charts—it’s about managing your emotions, too.
When you can’t maintain discipline or keep a clear head, you start making mistakes. And once you start making those mistakes, it’s hard to stop the downward spiral. Losing your emotional grip while trading can lead to overtrading or chasing a trade just to make back losses, which is exactly what happened to me this week.
It’s easy to see the mistakes after the fact—like the overtrading, ignoring previous rules, and pushing when I should’ve cooled off. But when you’re in the moment? It’s tough to be objective.
The FOMO Problem: Fear of Missing Out
FOMO is real, and it messes with even the best day traders. I mean, take my trade with GSIW this week as an example. I was already up $5,000 on the day and should’ve walked away, happy and content. But nope, I saw a potential squeeze in the market close and didn’t want to miss out.
That’s how FOMO works. It gets in your head, pushing you to chase something you should stay away from. Instead of walking away with a nice green day, I overtraded, added just a little too much, and ended up losing it all. What started as a $5K profit turned into a $7,500 loss real quick. In an instant, a win turned into a big loss, all because of the fear of missing out on what seemed like “one more opportunity.”
Emotion-Caused Spirals: Blame FOMO Again
It’s not just one bad trade, though—it turns into bad decision after bad decision, creating a spiral. FOMO sets you off, then you lose some money, and suddenly, you’re trading emotionally. You go from controlling the trade to feeling like the market is controlling you.
Looking back, I can see it clear as day. Compounding mistakes. Misjudging entries and exits. And most of all, trading with way too much size because I thought I needed to make up for what I’d lost. Honestly? That’s always a dangerous game to play, and it’s one of the hardest things to stop yourself from doing when emotions are running high.
Accepting That Even Experienced Traders Make Mistakes
Here’s a myth people like to believe: once you’ve been trading for a long time, these kinds of losses stop happening. I wish that were true! Even after years of experience, the markets are unpredictable, and FOMO doesn’t magically disappear. Every day brings new challenges, and even the best traders in the world can fall into emotional traps.
I’ve seen billionaire investors make moves that looked insane, only to end up losing hundreds of millions. It’s proof that none of us are immune to the gut-wrenching human side of trading. It’s hard, but a key part to surviving this game is accepting that mistakes—some big ones—are going to happen along the way no matter how long you’ve been trading.
How I’m Fixing My Trading Going Forward
Now, all of this doesn’t mean there’s nothing I can do about it. My trading tactics have to change, especially going into next week. Step one for me? Setting limits. I’m imposing a 5,000-share cap for my trading next Monday. I’ve got to slow down and make sure I stay emotionally balanced, especially after back-to-back red days.
I can break the cycle and make back what I’ve lost, but only if I control my emotions and avoid overtrading. A big part of that is putting solid boundaries in place and sticking to them. Sure, that might mean missing out on some bigger opportunities if a hot streak comes around, but it’ll also protect me from digging a deeper hole when I’m not on point. Better to rebuild gradually than risk another emotional spiral.
Conclusion: Learning and Growing From Losses
So yeah, it’s been a rough few days, and I’m definitely feeling the sting of losses. But the key is to take a step back, look at what went wrong, and adjust. Day trading is never going to be smooth sailing, and there will always be tough days. The important thing is figuring out what led to the mistakes and finding ways to fix them so they don’t happen again.
I’ve learned that it’s not just about having a good strategy—it’s about maintaining emotional control, being patient, and learning from every trade you make. There’s no straight line to success in day trading, but you can still move forward even when you feel like you’ve hit rock bottom. Now, if you’ll excuse me, I’ve got a weekend to reset before I jump back into the action!
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Warrior Trading was founded by Ross Cameron in 2012 and is now a thriving community of thousands of traders. You can learn more about joining the Warrior Trading community here
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Disclaimer: The results shared are based on my personal trading experiences and are not typical. Trading involves significant risk, and past performance is not indicative of future results. Always practice in a simulator before trading with real money.
