I'm no genius, I'm far from a prophetic trader. I recognize that I'm wrong more often than I'm right - you can see if it you look at my previous "Wednesday Winners" posts. My predictions are far from correct all the time.
However, if you take a look at the image - you'll see that I lose better than most.
The green arrows are times that I've BOUGHT, the red arrows are times that I've SOLD and as the image shows, I'm very capable of having both winning trades and losing trades. The big difference that you've probably noticed is that I lost well enough that I still made a profit.
This is something I learned from reading a book called Phantom of the Pits, which contains a clear rule about losing. Exit a trade when the market has not proven you correct.
Trading is a losers game - lose well and you'll win
Basically, a successful trader will cut off their losing trades while letting their winning trades run, while a losing trader will let their losing trades run in hopes that they'll return to a profit, or worse, they'll "Double Down" in hopes that the market will upswing and counter-act their loss. All while cutting off their winning traders quickly to lock in profits. This is a losing mentality and will ultimately hurt their bankroll.
If you want to succeed in trading, you must overcome the notion that losing is a bad thing. Learning how to lose and cutting off bad trades is the most important aspect to trading! I love cutting off losing trades quickly, and while I'm not perfect, (I still let losers run too long sometimes), I succeed because I make more money on my winning trades than I lose on bad trades.
Becoming a successful trader can be difficult but if it's something that interests you, I'd recommend checking out this free trading course I mentioned in my previous post.
If you're already a trader, I'd love to hear about your journey and/or follow and read your blog so please comment below so I can check it out!