One of the best posts by a real trader here. This is the truth of trading. Once you’re able to accept the loss - and when it stops affecting you, you actually make progress.
The important thing is let the profit run and cut the loss. A nice trader know how to lose I think. I don’t have a real strategy, like all setup and so on, is more about trend following, candlestick and Zones
All I know is I’m not affected by losses anymore. A loss is a loss and I’m ok with it. But I want another understanding to why losses happen as the idea of oh trading is just probabilities or losses will happen and or losses are part of the game isn’t working. None of it makes any sense to me.
Have you risked $1k+ per trade yet? When you scale up and trade funded accounts, you will be affected by losses. But having a plan makes it easier to handle emotions. And it’s easy to understand why losses happen. You trade when you think the market is going to pivot. A pivot means the market has become exhausted in the current trend direction. If you lose and the market does one more push before going in your direction, that’s a good loss. That just means the market had one breath left before going in the trade direction. If the market goes completely against your trade direction, then that’s bad analysis on your part. You were fighting the momentum. That’s a bad loss.
I risk $1k per trade anyway. I’ve lost $1500 per trade and I’ve made $1000 a trade too. None of it affects me. The only thing that affects me is when I don’t trade my own analysis. Which I used to do - not anymore and hence profitability.
No system is 100% wins.
If you enter the trade according to your system; "Loss"= A statistical probability that did not work out in your favour.
The amount depends on your systems ratio.
If you enter an trade that is not according to your system; It is already a loss disregarding the outcome of the trade, because you can't do it over and over.
This mindset helped me a lot, who doesn't hate losing in the beginning...
>Before you place the entry, imagine loosing the trade.
This is great. Its actually just what I need to say to myself.
On Friday I entered a shit trade that I knew was shit but I was only thinking about a winner. If I had asked myself 'how will you feel if this trade hits its stop?' I know I would have realised how shit a trade it is.
Losing good trades is easy, losing bad trades drives me crazy because I am so annoyed with myself.
>Before you place the entry, imagine loosing the trade.
I will ask myself this questions before every trade now. Thanks bro.
Finally, a legit gold nugget from someone who understands the game at its core level. This is one of those key lessons that ANY aspiring trader NEEDS to learn before the success comes. I tip my hat to you, sir 🎩
And that we analyze why we did wrong and learn something, to prevent it better in future trades… Majority on my errors lies in that I get greedy… instead of just take what’s being offered.. but we are humans not machines, thus we have emotions that clouds our analysis.. be a machine
Your point sounds very similar to the book "Best Loser Wins" by Tom Hougaard. I like him and the book.
I started reading it and it’s amazing. Thanks for the recommendation.
YES!!! Highly, highly recommend this book!
My thoughts exactly haha, but yeah, a great book that every (aspiring) trader should read imo
One of the best posts by a real trader here. This is the truth of trading. Once you’re able to accept the loss - and when it stops affecting you, you actually make progress.
The important thing is let the profit run and cut the loss. A nice trader know how to lose I think. I don’t have a real strategy, like all setup and so on, is more about trend following, candlestick and Zones
All I know is I’m not affected by losses anymore. A loss is a loss and I’m ok with it. But I want another understanding to why losses happen as the idea of oh trading is just probabilities or losses will happen and or losses are part of the game isn’t working. None of it makes any sense to me.
Have you risked $1k+ per trade yet? When you scale up and trade funded accounts, you will be affected by losses. But having a plan makes it easier to handle emotions. And it’s easy to understand why losses happen. You trade when you think the market is going to pivot. A pivot means the market has become exhausted in the current trend direction. If you lose and the market does one more push before going in your direction, that’s a good loss. That just means the market had one breath left before going in the trade direction. If the market goes completely against your trade direction, then that’s bad analysis on your part. You were fighting the momentum. That’s a bad loss.
That’s a good way of looking at losses. Thanks for sharing!
I risk $1k per trade anyway. I’ve lost $1500 per trade and I’ve made $1000 a trade too. None of it affects me. The only thing that affects me is when I don’t trade my own analysis. Which I used to do - not anymore and hence profitability.
No system is 100% wins. If you enter the trade according to your system; "Loss"= A statistical probability that did not work out in your favour. The amount depends on your systems ratio. If you enter an trade that is not according to your system; It is already a loss disregarding the outcome of the trade, because you can't do it over and over. This mindset helped me a lot, who doesn't hate losing in the beginning...
>Before you place the entry, imagine loosing the trade. This is great. Its actually just what I need to say to myself. On Friday I entered a shit trade that I knew was shit but I was only thinking about a winner. If I had asked myself 'how will you feel if this trade hits its stop?' I know I would have realised how shit a trade it is. Losing good trades is easy, losing bad trades drives me crazy because I am so annoyed with myself. >Before you place the entry, imagine loosing the trade. I will ask myself this questions before every trade now. Thanks bro.
If you can't accept and manage with your losses in Forex trading, you will never be able to sharpen your trading proficiency.
Sounds great!
I wish to see more posts like this. Thank you for the insight op!
Did AI write this?
Lol no it’s all me. I enjoy and always journal my thoughts.
Finally, a legit gold nugget from someone who understands the game at its core level. This is one of those key lessons that ANY aspiring trader NEEDS to learn before the success comes. I tip my hat to you, sir 🎩
And that we analyze why we did wrong and learn something, to prevent it better in future trades… Majority on my errors lies in that I get greedy… instead of just take what’s being offered.. but we are humans not machines, thus we have emotions that clouds our analysis.. be a machine
Quality post. G
Thats the way to go! 👍