How to Take Losses Like a Winner
The truth not everyone will tell you is this:
Taking limited losses makes you a better, more profitable trader. It may even make you better in other parts of life.
In this one-of-a-kind guide to trading psychology, you'll learn some "secrets" that most traders only learn from years of experience—often painful experience.
You’ll learn positive, productive ways to use trading losses to improve your overall education and performance.
From the introduction:
You know those confident, relaxed traders you read about, like Warren Buffett, George Soros, and Ray Dalio? You can become like them, in attitude if not account balance. Resilience isn’t just something you need to have, it’s something you deserve to have.
How did they become so resilient? They took losses, just like you. And then, like all successful traders, they learned what to do with them.
This book will help you learn those same lessons. We also have two “missions” for you to try, either in your demo or live account, to help you experience them yourself.
We'll go into some of the simple truths you don't often read about.
Those are the ones traders need to remember when things get tough. For example:
You don’t have to be right about the market’s direction all or even most of the time
Losses are a necessary part of a winning strategy
Losses are the tuition you pay for your education as a trader
Losses are a business expense, just like a restaurant's grocery or electric bill
Try thinking of losing trades as expenses and profitable trades as income, and just take in more than you spend
The goal is not to be right all the time; the goal is to make money
From the section on "Resilience"
Something that most people don’t realize about successful traders is that, as brash and showy as they might be in other parts of life, when they’re trading, they strive to be ego-less. If you let your ego take charge, you’re in trouble.
Why? Because your ego wants something different than what you want. You want to make money. But your ego just wants to be right. Never wrong, never imperfect. Just shining and flawless like a diamond. That’s what your ego wants and, like diamonds, it’s a temptation that’s hard to resist unless you train your ego to stand aside and let you work.
A well-trained ego, on the other hand, can be a blessing. It can keep you feeling confident without interrupting you as you do your job, which is not to perfectly predict the market’s future, but to profit from what the market is offering you right here and now.Download E-book:
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