People trade because they have a positive expectation. Positive expectation means that the outcome of a series of trades should end with profit. But every trader makes losses too, it is part of the system. So you should see a loss as an inseparable part of successful trading. Losses are a result of the rules of your system. It is by following these rules that you will end up profitable. If you dont take the loss, you will miss the profit too.
How to learn to IGNORE the failure in trading.
- Thread starter Jamie J.
- Start date
Do you mean that in order to get something substantial, first you must lose something?
Good traders have a system or tradeplan. Every system or tradeplan has losing trades. So to succeed you need to take all the trades that are generated, because you never know in advance which trade will be bad. Only by taking all the trades you know your performance will be optimal. So losing trades are part of a good system. You have to trade your system or tradeplan for 100% and never disobey the rules. As long as you lose because you follow the rules you should ignore it as failure and consider it as a succes.
If you ever want to make money in any business,
You gotta do the right things, the right time.
To lose don't mean that you'll win.
Otherwise it would be easy.
But as in every venture,
There are things we do not know.
Stuffs that we have to take into account.
Usually if you're good then you make money in average.
Then if you want to make more money, you gotta improve.
If you lose. Then you made something wrong. Take the loss.
And look where it breaks. Fix that process. Try again.
If it's fixed. Then you make money. Otherwise,
You lose. There ain't no magic.
If you do the right thing, the right time.
Then you win. Otherwise,
You lose.
So if you want to get something substantial,
Clean your loss. Learn from your errors.
You can't tell till you conjecture,
Then till you bet.
If you want to learn,
You must conjecture first.
If you want to conjecture consistently,
Then you must adhere to some principles.
You need rules. If ... Then. Test & improve from there.
You must be able to tell why you took action.
How did you come to pull the trigger.
Was it good (Profit) bad (Loss) ?
What's the expectency?
Is it better this way ?
That way ? The other way ?
Define competitive conjecture.
Different system. See what works.
But find especially what doesn't work.
Since multiple ways lead to Rome.
But far fewer leads to hell.
Last edited:
No one likes to lose money. A failure time haunts us from time to time. And our negative emotions can affect the next steps. Therefore, we really need an effective method to form our psychological stability. To be honest, don't like the idea to back to demo account.
Failure is part of trading!
Risk is what happens your money when you decide to trade!
Doubt is far worse than fear!
Success only comes when you know what you need to do, and do it "repeatably" without giving it a second thought.
There are but 3 things one needs to know in order to trade effectively, and if you do not know them you should not be risking your money in the markets, as you will more than likely lose more than you win!
J_S
the demo is a false reality when dealing with the anxiety of a loss. This is why a person needs to place real trade's in order to determine what level his anxieties would be, when dealing with a loss. its a conditioning process that requires a person to experience the highs and lows of trading.
Not always!
You can do the right thing, the right time, and still lose if you stare at the screen and watch price suddenly reverse and go against you.
The reason you lost, is simple, as you did not react to what price was doing!
Many trade thinking they will be right, but the reality is that you can never know if you will be right or wrong, and all you can do is place the trades where and when you believe the odds are high that price will go the way you think it will.
This all sounds simple, which it is, once you find out how to work out the best odds, and, depending on your time frame, set the correct stop level, be it mechanical or visual - but if you trade without identifying the correct stop level, well, you are not only gambling, you are now gambling recklessly, which is not a good thing to do in the financial markets.
Fools and their money are easily parted!
J_S
Review your trades, know what you did or did not do, understand what you did and how it affected your outcome, and, know that if you keep doing the same thing, you will keep getting the same results!
I know what I done right on the first trade, and I know what I done wrong on the second trade, but the main thing is that I won on both trades, as this means I made some money, and, if you make some money every day, at the end of the week you will have more money than when you started, which means you are learning, which means you are getting better, which means you are starting to know what you need to do, and are doing it!
What ever way you look at it, $154 for 25 min work is not bad any day, and no reason why you can't repeat it, but you must be prepared for when the market suddenly goes against you, and you must act, otherwise, you will just give back the money you make, and lose out on opposite direction moves, which means you now start to undo your learning, and, once that starts you are on a road to nowhere!
J_S
I know what I done right on the first trade, and I know what I done wrong on the second trade, but the main thing is that I won on both trades, as this means I made some money, and, if you make some money every day, at the end of the week you will have more money than when you started, which means you are learning, which means you are getting better, which means you are starting to know what you need to do, and are doing it!
What ever way you look at it, $154 for 25 min work is not bad any day, and no reason why you can't repeat it, but you must be prepared for when the market suddenly goes against you, and you must act, otherwise, you will just give back the money you make, and lose out on opposite direction moves, which means you now start to undo your learning, and, once that starts you are on a road to nowhere!
J_S
Last edited: