Winners and Losers: It's Not The Trades It's The Traders...
Wins and Losses are familiar to us all, the pain of loss and the joy of a win. There is no confusion there.
However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.
Uh huh... that is most likely you! However, help is on the way.... I am going to discuss ways to stop financial losses, and begin being a winner at the trades. Prior to placing orders, you have to decide where your stop loss order will be placed.
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.
Plan and place stops equals your plan to win, and you are prepared to have a loss but make it through to continue trading. A look at the traders psychology of loss taking is in order here.
A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.
What are the answers to these questions?
1.) When should you stay on board and when should you bail out?
2.) Do you have a rule to tell you when to sell a losing stock?
3.) Is there a set point for you to break-even by moving your stop?
If you can't answer these questions, you're not alone. And what it means is that you need to establish some rules for yourself, especially when you go to short stocks. But, all the trading rules in the world are meaningless if you don't use them. That's why you and I need to "talk turkey" about what's really going on with you when you refuse to manage your risk in a proactive and professional way.
Many investors refuse to take a loss for two basic reasons:
1. Inability to admit they are wrong.
A realized loss is a great big unavoidable acknowledgment of wrongness. For many traders, this is just too painful to admit. It's interpreted as an allegory for a total life failure or feeds a persistent, negative self-image.
The loss is personalized and pulls on their emotions. It is easier to deny the loss than own up to the pain of the loss. He will either lose everything before he will seek to change or he will quit trading.
2. Taking that large of a hit would damage their portfolio greater than it can recover from.
Losses aren't just on paper, they are real. The loss is what it is and the quoted price is it's value.
These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.
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.
Winning traders separate who they are from what they do. They know, or learn, that their trading faults lies in their approach or their skill level but not in their fundamental worth as a person. The pain they feel is quickly transmuted into motivation, which fuels their desire and determination to become 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.
The continued reminders about "proper stops and risks" is one of the main points in the 1 year mentorship program. When you have a full understanding of my system, it will be important for you to hear me say "Don't move your stop" and "Take your profits at the time the system says to not before or not after". The course itself is top notch, but the mentorship is valued more highly among the majority of my students. - 23305
However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.
Uh huh... that is most likely you! However, help is on the way.... I am going to discuss ways to stop financial losses, and begin being a winner at the trades. Prior to placing orders, you have to decide where your stop loss order will be placed.
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.
Plan and place stops equals your plan to win, and you are prepared to have a loss but make it through to continue trading. A look at the traders psychology of loss taking is in order here.
A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.
What are the answers to these questions?
1.) When should you stay on board and when should you bail out?
2.) Do you have a rule to tell you when to sell a losing stock?
3.) Is there a set point for you to break-even by moving your stop?
If you can't answer these questions, you're not alone. And what it means is that you need to establish some rules for yourself, especially when you go to short stocks. But, all the trading rules in the world are meaningless if you don't use them. That's why you and I need to "talk turkey" about what's really going on with you when you refuse to manage your risk in a proactive and professional way.
Many investors refuse to take a loss for two basic reasons:
1. Inability to admit they are wrong.
A realized loss is a great big unavoidable acknowledgment of wrongness. For many traders, this is just too painful to admit. It's interpreted as an allegory for a total life failure or feeds a persistent, negative self-image.
The loss is personalized and pulls on their emotions. It is easier to deny the loss than own up to the pain of the loss. He will either lose everything before he will seek to change or he will quit trading.
2. Taking that large of a hit would damage their portfolio greater than it can recover from.
Losses aren't just on paper, they are real. The loss is what it is and the quoted price is it's value.
These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.
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.
Winning traders separate who they are from what they do. They know, or learn, that their trading faults lies in their approach or their skill level but not in their fundamental worth as a person. The pain they feel is quickly transmuted into motivation, which fuels their desire and determination to become 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.
The continued reminders about "proper stops and risks" is one of the main points in the 1 year mentorship program. When you have a full understanding of my system, it will be important for you to hear me say "Don't move your stop" and "Take your profits at the time the system says to not before or not after". The course itself is top notch, but the mentorship is valued more highly among the majority of my students. - 23305
About the Author:
Learn how it's very possible to make 6% per month in your investment accounts using etf trend trading! "Big A" is a recognized expert in the world of etf trend trading system & reveals etf secrets that have been kept under wraps by hedge traders for years. Get his free report & webinar today!
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5:45 AM
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