The Reasoning Of A Losing Trader
losing trader trade mentor advice
Many professional traders describe how their transition from a losing trader to a winning trader required accepting that losing was part of the game
“What is the ultimate rationalization of a trader in a losing position? ‘I’ll get out when I am even. Why is getting out even so important? Because it protects the ego. I was able to become a winning trader when I was able to say, ‘To hell with my ego—making money is more important.”
If you get out even, you can say, “I wasn’t wrong. I didn’t make a mistake.” That need not to be wrong is exactly why people lose. So, the irony is that amateur traders lose money because they try to avoid losing. Professional traders, however, understand that they need to take losses in order to win. They understand that taking losses is an integral part of the trading process. To win at trading, you need to understand that losing is part of the game.
3 Questions for you.
Answer in the comment section below, remember you can learn by reading but you will learn more by interacting with other people. I will make sure to reply to all of them.
- What are some of your own experiences, being afraid to take a loss and how did it turn out(details)?
- Let say you just discovered you are on the wrong side of the trade, what do you do take a loss immediately or wait to exit at breakeven?
- What will you do differently from now on to get better at taking losses?