I want to find out from others how they cope with loss, because I believe that it is loss, and how well each individual copes with it that will ultimately make or break a trader.
We all know that losing is part and parcel of trading, but it's not quite as simple as that is it, because as a trader, when we lose, we lose money, hard earned wonga that we do not want to lose, and when we lose it, we lose it quickly and dramatically, and yes, it hurts. Now I would say that to be in the position where you can simply put the losses behind you and move on to the next trade as if nothing had happened, you either need to be so wealthy that it doesn't matter, or you need to have reached that elevated stage in a trader's career where losing has become an accepted norm, accepted because you know that given a certain number of trades you will come out ahead. But what about taking a loss or sequence of losses before you have reached this celebrious platform in your career? Just how can you approach the next trade with the cool impartiality required when you have just taken a loss or perhaps a sequence of losses and are just desperate for a winning trade? How are you going to be able to put on another trade when your fear of losing again is greater than your expectation of winning? This is the crux, and how you deal with it can be the difference between success and failure as a trader.
I know we all have something to say about this because we have all been there in one form or another. So let's hear it. Maybe you are in pain right now. Maybe you have yet to put your feet into the water and are still demoing but anticipating how you are going to cope with real loss. Or maybe you have come through the fear and have blazoned a path through to the promised land. Surely you will have some great wisdom to pass on. Honesty will be greatly appreciated.
We all know that losing is part and parcel of trading, but it's not quite as simple as that is it, because as a trader, when we lose, we lose money, hard earned wonga that we do not want to lose, and when we lose it, we lose it quickly and dramatically, and yes, it hurts. Now I would say that to be in the position where you can simply put the losses behind you and move on to the next trade as if nothing had happened, you either need to be so wealthy that it doesn't matter, or you need to have reached that elevated stage in a trader's career where losing has become an accepted norm, accepted because you know that given a certain number of trades you will come out ahead. But what about taking a loss or sequence of losses before you have reached this celebrious platform in your career? Just how can you approach the next trade with the cool impartiality required when you have just taken a loss or perhaps a sequence of losses and are just desperate for a winning trade? How are you going to be able to put on another trade when your fear of losing again is greater than your expectation of winning? This is the crux, and how you deal with it can be the difference between success and failure as a trader.
I know we all have something to say about this because we have all been there in one form or another. So let's hear it. Maybe you are in pain right now. Maybe you have yet to put your feet into the water and are still demoing but anticipating how you are going to cope with real loss. Or maybe you have come through the fear and have blazoned a path through to the promised land. Surely you will have some great wisdom to pass on. Honesty will be greatly appreciated.