If you think that you are going to trade and never lose then you are in for a rude awakening. There is no such thing as a trader that never loses and anyone that claims that they are is a liar.
Guest post from visionsofaffluence.com
I mean let’s be honest here no one is perfect and even though as people we like to strive for perfection in an attempt to keep our fragile egos intact even the best of us fail. You just have to accept the fact that in this business you are going to be wrong sometimes.
Let’s look at baseball. The best hitters in the game have batting averages of around .300. Do you know what that means? That means that they only get on base 30% of the time that means that they fail 70% of the time. And I don’t know but the last time I checked Alex Rodriguez wasn’t sitting somewhere beating himself up every time he strikes out.
Now I know what you’re probably going to say” but that’s baseball everyone knows you’re not going to get on base the majority of time” And that is my point exactly. You see baseball players have accepted the fact that they aren’t going to hit a homerun or even get on base every time the step up to the plate. They know that sometimes things just don’t go your way and that it would ridiculous for them to expect to be perfect. They have accepted failure as part of the game.
They can do this because they know that they will have another chance and they have removed all unreasonable expectations from themselves. This frees them up to just concentrate on just hitting the ball.
Imagine what the great Hank Aaron’s career batting average would look like if every time he was at bat he kept thinking about the last time he struck out. It would be horrible.
So when you take a loss just accept it as a normal part of doing business and keep it moving. Don’t ever bring the emotional baggage of a previous loss with you on the next trade because I guarantee you it only going to lead to another loss. And before you know it you’ll be sitting in front of your computer looking at an empty trading account. And trust me that’s not a good feeling.
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