Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Don’t Sweat The Trading Losses

admin by admin
July 11, 2014
in Uncategorized
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Online Trading Academy Article of the Week

by Sam Seiden, Online Trading Academy

My whole life, I have been very involved in sports. Ice Hockey, Soccer, Golf, and Tennis are the sports I love to compete in. Playing hockey at a high level, I learned how to win, consistently. There were always teams in the league that would win consistently and others that would lose. When we would play a team that had a bad record, sometimes they would be leading the game for a while but I never worried. It was almost like we could be down by a few goals and we knew we were going to win in the end. This is because of our positive attitude which was due to our rock solid confidence. Sure enough, most of the time no matter what the score was during much of the game, we would come back and win.

The winning attitude almost always beat the losing attitude and always will. The winning teams play with one thought, that’s “to win.” The losing teams also play with another thought, “not to lose.” The latter equates to a lack of confidence and fear and that is a recipe for consistent failure – losing.

As like many of you, I love the game of golf. I have a childhood friend whom I play with sometimes. While our skill levels are near equal, I almost always beat him. What happens is that as soon as he hits a bad shot and I mean a really bad shot, he can’t recover mentally. He allows this shot to have such a big impact on his game that the rest of the round of golf is a disaster for him. I too have a bad shot sometimes. The difference is that I don’t let it have anything to do with my next shot. I know the bad shot will happen sometimes which means it’s actually a part of winning the game. As soon as my friend hits a bad shot, he is finished, I win, game over.

I Love to Win, I Hate to Lose

Having so much success in a sport growing up, you feel like there is nothing in life you can’t do. No matter what the task, not succeeding is never an option or thought. So, you can imagine how shocked I was when I entered the trading world and was told that you have to be a good loser in order to win. HA!! That had to be a joke I thought… There is no way I am going to lose because I hate losing, I hardly ever lose at anything because I try as hard as I can to work harder and smarter than my competition. It didn’t take long to realize that this was 100% true, I had losses and that didn’t sit well with me. I tried to eliminate them but as I did, I also eliminated the winning trades. This was not good, I hated losing. Slowly though, I figured out the secret to trading from experience and a friend of mine. It all depends on your definition of losing. In my early trading days, I had the wrong definition of the word “loss.” In my very early days, I actually thought I would be the one trader in the world that never lost. Can’t believe I’m admitting that in an article, but it’s true J.

Perception Is Everything

Think about all the setbacks and losses you have had in other parts of your life; financial, relationships, job promotions, and more. Haven’t they always made you stronger and led to something “better?” Losing is a very necessary part of winning in my humble opinion. As our founder at Online Trading Academy, Eyal Shahar says,

“Life is all about perception.”

If I had a dollar for every time I have heard him say that, I wouldn’t have to trade. He is so right… The key is to categorize. If I perceive each trading loss as a loss or losing, it’s not going to sit right with me, I can’t stand losing! However, if I put each trading loss in its proper place which is in the “winning” strategy category, all of a sudden a trading loss is a must for success.

I was in the Extended Learning Track (XLT) one time, leading a session and I pointed out some short term income trading opportunities that I ended up taking in my account. I went over the factors that led me to this conclusion and everything seemed fine.

The trades were in the Euro, S&P, and Gold Futures. As you can see above, two of the trades were losers and one was profitable. As you can also see above, the net result of all three trades was a profit of $2,652.50. Notice the losses are much smaller than the gain. The losses should be NO big deal and small. Your position size should be such that you are not risking more than what you determine to be a truly acceptable loss. You should make sure this number which is really your ultimate risk is a number you are very comfortable with. With the numbers above, I can be wrong and lose money on two out of every three trades for the rest of my life and do very well. So you completely understand, both losing trades were profitable for a bit and then stopped out after moving my protective stop order closer to my entry price. These were not full stop losses but even if they were, it would still be more than fine. Taking your proper losses and holding your positions to your profit targets is the key to small losses and larger profits.

These two losses are very small. I do have bigger losses than that sometimes. If you are doing this right and following the rules, your batting average should be well north of 50% but the point is, it doesn’t need to be. If your losses appear scary to you, one of the main reasons is that you’re simply taking on too much risk for your comfort level. If the loss itself makes you cringe with anger or fear, you also have the wrong perception of losing. You have “losing” in the wrong category. Take the loss and move on.

Like Las Vegas, I don’t care at all that I was only 1 for 3 that day. I know that as long as I stick to my rules, I am running a strategy that is very profitable because the risk is low, the reward is high, and the odds are stacked in my favor. I know that I will only achieve profits if I include and accept losses from time to time. When you shift your attitude and understand this, the word “loss” all of a sudden means the same thing as the word “win.” On this day, the first of the two trades were losers. If you go and beat yourself up over a loss or think you did something wrong and become paralyzed by fear and failure, you will stop executing your winning plan and never see the gains.

From my experience, the rules that truly stack the odds in your favor are not that difficult. Quantifying supply and demand using our Odds Enhancers is key. The challenging part is helping people shift perception of loss to the win category.  I meet people often that actually think I and other instructors never lose. They want to take our classes because they think they will learn to never lose and only have winning trades all the time. Even a trader with a high winning percentage certainly has losses. None of us like to lose, I know firsthand from competing in sports. Just like in sports however, falling down in practice is a must if you are going to skate faster. Striking out from faster pitches is a must if you are going to make it to the big leagues, swinging your driver harder and slicing the ball 100 times is a must if you are ever going to hit a 300 yard drive straight. Imagine what would happen to the casino if they tried to eliminate the losses. They would be out of business and none of us would have a playground in the middle of the desert to enjoy. Losing in trading is great so long as it’s proper losing. To become a professional winner, you have to first become a professional loser. This is a road block that many people never overcome which is why many people fail at market speculating. It’s the few market speculators with the proper perception that get paid from those with the wrong perception, the transfer of accounts. If you want to change your results, try changing your perception of loss.

Hope this was helpful, have a great day.


Previous Post

One Country Shockingly Absent from the US Immigration Debate

Next Post

Crisis Chronicles: The Collapse of the French Assignat and Its Link to Virtual Currencies Today

Related Posts

Web3 Company To Run Super Bowl Ad For NFT Game As Crypto Is Ignored
Business

Web3 Company To Run Super Bowl Ad For NFT Game As Crypto Is Ignored

by John Wanguba
February 8, 2023
Google Introduces ChatGPT Rival Bard, AI Search Plans Accelerate In Battle With Microsoft
Business

Google Introduces ChatGPT Rival Bard, AI Search Plans Accelerate In Battle With Microsoft

by John Wanguba
February 8, 2023
BP Earns Record Profit In 2022, Slows Shift From Oil
Business

BP Earns Record Profit In 2022, Slows Shift From Oil

by John Wanguba
February 8, 2023
How To Mine Bitcoin At Home
Econ Intersect News

How To Mine Bitcoin At Home

by John Wanguba
February 7, 2023
Adani's Market Losses Exceeded $100B As Crisis Shockwaves Extended
Business

Adani’s Market Losses Exceeded $100B As Crisis Shockwaves Extended

by John Wanguba
February 7, 2023
Next Post

Crisis Chronicles: The Collapse of the French Assignat and Its Link to Virtual Currencies Today

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe finance FTX inflation investment market analysis markets Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia technology Tesla the UK the US Twitter

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Web3 Company To Run Super Bowl Ad For NFT Game As Crypto Is Ignored
  • Google Introduces ChatGPT Rival Bard, AI Search Plans Accelerate In Battle With Microsoft
  • BP Earns Record Profit In 2022, Slows Shift From Oil

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish