I hate to burst all of your bubbles, but if you want to be a successful trader, it takes work. If any of you reading are traders then there is something I have in common with you, Like all traders, I absolutely hate losing. When I started trading, I literally would trade with no stop loss and if things went against me, I would wait and close when they hit slight profit so I could say I won all my trades. This obviously had detrimental impacts on my progress. I will list some of the problems that come with the fear of losing.
- You trade with no stop loss, which leads to a blown account
- You set a stop loss, but you use a horrible risk reward ratio, like the infamous 100 pip stop, 10 pip TP to try and garner as high a win rate as possible, this gives you at BEST breakeven results.
- You over analyze your trades, because of that you miss on many great opportunities because you are afraid you will lose
- You get anxious and over trade or revenge trade, because every time you lose, you feel you need to make it back.
These are just a few of the problems that are associated with a fear and inability to deal with losses, and understand that having losing trades is part of trading. It doesn’t matter who you are, you could be George Soros even, and you will still have losing trades. One of the biggest ways I began to deal with this fear of losers, and be able to move on, is I learned about risk management. I realized that losses are just a part of this game, and I would just keep blowing accounts if I kept trying to trade with a 100% win rate. So, I used my trade journal to temper those habits, along with enhance my profitability. After recording results for awhile I realized that statistically I will win 50-60% of my trades, with 1:2 RR as long as I followed all of the rules, and stayed disciplined trusting in my system and strategy. What this means is that If I didn’t inflate my losses by revenge trading and trying to win every single trade, and I trust in my system, I will always make money and maintain consistent profitability. The biggest advice I can give to all of you in your trading, is record all your trades, and next to them record if you followed all the rules, if you want to get past losers quick, keep a detailed trade journal to show how much you can make if you just accept sometimes you will lose and follow your system. If any of you have any other advice you can give to help deal with losses, please share it below!