Learn To Take Losses

[Handle123]

Time is your worst enemy, it allows one to think outside of one's rules. I am horrible at guessing but am very good at being a robot when scalping.

Practice, practice, practice, on much smaller timeframes, don't think of outcomes, practice just pulling the trigger and letting software monitor outcome.

 

[danielc1]

People that are drawn to trading look at money in the first place. Winning is associated with making money, the opposite of losing money. So, in a duality you have then right and wrong. Where right gets associated with winning money and wrong gets associated with losing. The trader has to overcome this mindset with another definition of wrong and right that has nothing to do with the money outcome but everything with following a tradingplan. Did you follow your plan and have a loss? You have done your job right. That is what is meant with you have to learn to deal with losses, because they are a fundamental building stone of a solid trading plan. You can not be successful as a trader if you have a difficulty with a loss. If this trigger an emotion, you need to adress that first before you go any further. Most avoide the work necessary to address this and go on to find yet another system or indicator to avoid it.

 

[hilmy83]

You guys take losses?

 

[taowave]

Elite Traders have losses??

You guys take losses?

 

[schizo]

People that are drawn to trading look at money in the first place. Winning is associated with making money, the opposite of losing money. So, in a duality you have then right and wrong. Where right gets associated with winning money and wrong gets associated with losing. The trader has to overcome this mindset with another definition of wrong and right that has nothing to do with the money outcome but everything with following a tradingplan. Did you follow your plan and have a loss? You have done your job right. That is what is meant with you have to learn to deal with losses, because they are a fundamental building stone of a solid trading plan. You can not be successful as a trader if you have a difficulty with a loss. If this trigger an emotion, you need to adress that first before you go any further. Most avoide the work necessary to address this and go on to find yet another system or indicator to avoid it.

Great advice. I, for one, like to trade for trading sake. Money is secondary. There's no better feeling than having executed my trades exactly to the plan--win or lose.

 

[ironchef]

Catchy Title of book ''Best Loser Wins'' but if that'$ is your best plan;

Read "Best loser wins"

Looks like Mr turtle and Mr Tao went to the same school.

I better read the book and join the Best Loser club.

 

[ironchef]

Elite Traders have losses??

Because they read your book.

 

[trendmomentum]

Assuming, of course, that the plan was a good one.

Actually no. Acknowledging that the plan has failed and it is in fact a no good one, is also part of the stop loss. Every business plan has metrics to gauge success and failure. It is up to the manager to put that into practice. Of course, there are all sort of managers.

 

[Frederick Foresight]

Actually no. Acknowledging that the plan has failed and it is in fact a no good one, is also part of the stop loss. Every business plan has metrics to gauge success and failure. It is up to the manager to put that into practice. Of course, there are all sort of managers.

I think you missed the point.

 

[ironchef]

I think most of us know how important it is and in theory how to take losses.

But theory and practice are two different things. Once in a while, in the thick of the battle, all rules and discipline are out the window we let emotion controls us.

The last two weeks I was trying out @volpri's approach and had such an out of control experience this last Friday. On Friday, the stock price went through some violent swings and the first trade went against me in a big way. Should have stopped and called it a day. Instead I kept going and ended up lost half of the profits accumulated in the last two weeks.

It was paper trades but imagine if it is live.

I was going to go live today but decided to delay it until I can work things out.