A loss - gives you a lesson but apart from money - a win gives you nothing.
Ignored
That can be true, but not necessarily. A loss that gives you a lesson implies things could have been done differently. That assumes the outcome was knowable, and it often isn't. Nobody can predict fat finger trades, terrorism, earthquakes, etc. So, it's not uncommon to do everything right and take an L.
That said, a lot of valuable information can be learned from studying losses. If you're a discretionary trader, odds are a mistake was made that you can learn from. If you're an algorithmic trader, you can evaluate if the loss fell within your expected range of outcomes or if the initial alpha has since eroded.
Truth be told, wins should be studied too. Everyone has, at one point or another, been bailed out of a bad trade by luck so an honest assessment of your wins can be valuable too!
{quote} That can be true, but not necessarily. A loss that gives you a lesson implies things could have been done differently. That assumes the outcome was knowable, and it often isn't. Nobody can predict fat finger trades, terrorism, earthquakes, etc. So, it's not uncommon to do everything right and take an L. That said, a lot of valuable information can be learned from studying losses. If you're a discretionary trader, odds are a mistake was made that you can learn from. If you're an algorithmic trader, you can evaluate if the loss fell within...
Ignored
That's a good point - wins should be studied too
Although wins should reflect your trading plan- although the trading plan will have a number of set ups
Losses help refine it.
Obviously, there will be instances where losses happen for something completely unexpected - and nothing can be done. Hence the reason for stop losses.
Also I find looking at old losses before trading - helps prevent you from deviating from your plan.
Look ahead, Macro=Direction, Levels & Structure = Entry
