This is a sentence that you always hear from successful market traders, and if you want to be a successful trader both in and out of the market, you have to learn to love losing!
In fact, it doesn’t hurt to be hurt. Of course, don’t get me wrong. You will not be happy with the loss, but you should be happy when the market does not give you the right profitability.
Most people learn this in the worst possible way (if they learn it!). They lose all their money before they realize it could be a good loss. Instead of turning a blind eye to harmful positions, like most people, traders succeed in confronting the fact that they may have made a mistake, and as a result, when the time comes to accept their loss, they do so. They do it wholeheartedly and immediately close the position with the same damage. Your harmful trades, as a human being, do not detract from anything. You are not doing your own harm. Just as you do not win your trades. They are just the result of the work and business you do.
It seems that the reason why many people find it difficult to get rid of their harmful positions is because they think that these positions are a reflection of their own personality. What a misconception.
Losses are an integral part of business. Almost all successful traders have bad positions every day. But they do not involve themselves in the idea that these losses are part of them. They know and are aware that this is part of the job, and the sooner they get rid of this damage, the faster they can look for the right next position to make a profit. Of course, this is much easier said than done, but it’s true that making money in this market.
A friend of mine has been trading on stocks for more than 15 years. He may be considered one of the top 5 s & p traders and even one of the top 25 traders in the world. The house where he lives has 14 bedrooms and 6 garages! He is clearly one of the best in the business.
He loses thousands of dollars in his loss-making transactions almost every day. Maybe the amount of money he loses in one day is more than the money that a lot of people make in a month.
Of course, he also earns thousands of dollars in his lucrative positions. What he has learned is to accept that loss is part of the game, and the sooner he can stop losing, the sooner he can make a profit. The same is true for you, albeit on a slightly smaller scale.
One of the most important things to learn is, “Why is it so important to rethink your position?" If you don’t learn this in advance, you may panic at the time of the accident and suddenly find yourself in the same situation that you were always afraid of.
In other words, the calamity that should not befall you! But if you learn to understand and accept these principles, only then will you be able to turn your harmful positions into huge losses or even the loss of all capital and misery! , Prevent.
Published and authored by FalconProfit.com
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