Traders Not Trades Bring Wins or Losses
You know the difference between winning and losing trades — we’ve all experienced both and know the joy and the pain well.
With trading losses, the majority of the time the shortfall comes from the trader and no the trading strategy.
Yes, that probably means you. But, today I’m going to talk about how to stop losing money and become a winning trader. Before you even place an order, deciding where to buy or sell is always connected to where you place your stop-loss order.
You can’t delve into the topic of position entry thoroughly without speaking of stops. The question is, “Why are stop losses used by so few investors?” If not using stops is a weakness for you then you want this info. This info could mean the difference between on time retirement with a fat nest egg or just ‘getting by’ at a later retirement date.
When you have a plan for placing stops, your wins will out weigh you losses, and when the losses come you will come out on top because you will still be around to trade. The traders psychology of loss taking bears looking at here.
Every pro trader has to have a point in their minds denoting when they will get out, before they will get in. This has to be known before hand so that when the moment comes they can get out quick. This is a down-home basic knowledge the each pro-trader has to have.
Can you answer the following questions?
1.) When should you stay on board and when should you bail out?
2.) When a stock is losing, do you have a guide that lets you know when to sell?
3.) Is there a set point for you to break-even by moving your stop?
Are you unable to answer these questions? You aren’t alone. This indicated that you should be establishing some rules, especially when going to short stocks, but trading rules don’t mean a thing if they aren’t used. This is why we need to have a frank discussion about why you aren’t managing your risks in a hands on way, like a pro should.
Many investors refuse to take a loss for two basic reasons:
1. Admit they are wrong? No Way!
Check out our reviews:
FAP Turbo Review
Forex Megadroid Review
Forex Autopilot Review
For many traders a realized loss is a huge admittance of being wrong and that is just too hurtful to acknowledge. To them it is linked to being a failure at life and their self image is directly affected by this perceived failure.
They personalize the loss and experience emotional pain. Many traders prefer to remain in denial instead of acknowledging their losses are causing them pain. This type of trader often has to lose it all before he begins to change (or gives up trading).
2. Their portfolio, because of its size, can take a hit that big.
The loss is a real loss, it is not solely on paper, the stock/bond option has the value of the quote, even if you don’t see it.
These 2 situations are types of self-denial this problem is common with tons and tons of investors. Observe Merrill-Lynch, AIG, WAMU, Lehman.. and on and on…. you should be comforted to know that this self denial is not limited to just one income level or social status.
If this article is making you uncomfortable or bringing up feelings of anger or powerlessness, then that’s a good sign. It means you have enough self-awareness to change.
Winning and losing traders have a different view of the pain from a loss, winners don’t take it personally. They look at the loss and see that they need to change their approach or execution not that they are personally flawed.
A winning trader distinguishes himself from what he does. They are aware that their worth as a human being is not linked to their skill at trading, but that they will need to increase their skill and experience to improve their approach and execution. They use the pain they feel to motivate themselves and increase their drive to be a better trader.
Both are learned responses and within your control. The opportunity for growth from the pain of losses is the same. It’s what we do with the emotional pain of a loss that matters, not the loss itself.
Utilize faithfully my verified ETF Trend Trading System and develop winning habits. Practice the principles, keep an eye on your position size relative to your portfolio and the product will be an overall growth in your portfolio.
“Proper Stops and risks” are main points in my program and reminding you constantly of that is an important part of my mentorship program. Once you have gone through my program completely and thoroughly understand it, you will still want me to tell you “Don’t move your stop” and “Be sure to take profits when my system tells you to, not earlier or later” In fact the mentorship program is probably valued higher than the course itself.
Learn how it’s very possible to make 6% per month in your investment accounts using etf trading! “Big A” is a recognized expert in the world of etf trading system & reveals trading & investment secrets that have been kept under wraps by hedge traders for years. Give him your email & get a free report & webinar today!
Related Posts
