Stop the Sequence.
End exposure before analysis begins and preserve a factual record of what happened.
exit conditionTrading stopped and the event documented.
- Close all trading platforms and charts. Stop trading immediately to prevent further damage.
- Document what happened (factually, no emotion):
- What rule was broken?
- What was the emotional trigger?
- What was the actual $ loss vs. planned risk?
- Physical and mental reset. Take a 10-minute walk, do breathing exercises, or a brief meditation to clear your head.
Review the Evidence.
Separate the quality of the decision from the financial outcome and classify the damage.
exit conditionRule breach and account impact classified.
- Review the trade against your written rules:
- Was it a valid setup? Yes/No
- Was position sizing correct? Yes/No
- Was stop-loss honored? Yes/No
- For any "No" answers, write: "I will [specific actionable step] to prevent this next time."
- Calculate the impact on performance:
- Is this loss within your acceptable drawdown limits? Yes/No
- Does this require temporarily reducing overall position sizes? Yes/No
Earn the Return.
Restore authority through smaller, rule-compliant decisions rather than confidence alone.
return gateThree compliant trades at reduced size.
- Take a mandatory break. No trading for at least 24 hours (longer if emotions linger).
- Re-read your trading rules out loud. Reaffirm your commitment to the process.
- Commit to ONE specific improvement for the next trading session.
- Reduce position sizes by 50% for the next 3-5 trades to rebuild confidence under lower pressure.
- Resume normal risk only after 3 consecutive rule-compliant trades.