Sunday, February 8, 2015

TRADERS SHOULD BE GRACEFUL LOSERS


In elections, there will always be a winner and a loser. The winner commands the confidence of the people, which should be respected by all. Losers should be graceful in acknowledging the confidence vote that the winner gets.

Trading is the same. Traders will often have trades that do not work out well. There is nothing wrong in the analysis. Markets will do what they want , so often the market does not respond positively to the trading analysis. The trade loses money. That should be the end of the subject with the trader moving on, accepting the loss gracefully and planning ahead.

When the trader refuses to face the loss, more problems come in. The trader now tries to double up, start taking low probability trades, ignore stop losses and more. Instead of falling in this trap, much better for the trader to say: the market did not want to reward me,I accept the wisdom of the market, let me move on.

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