Winners and Losers: It's Not The Trades It's The Traders...
To win or lose a trade is a familiar thing. We have experienced bot the joys and pains of it.
But, when we look at losing trades, most of the times it's not the strategy that has failed but, rather, the trader.
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.
If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you'll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.
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.
All professional traders understand they must know where they are getting out before they get in. They have to know ahead of time what a wrong trade looks like so they can exit it quickly. This is a rudimentary fundamental that EVERY professional trader knows the answer to.
Are you able to respond to these questions?
1.) What are the indicators for staying put, or getting out?
2.) When a stock is losing, do you have a guide that lets you know when to sell?
3.) Do you have a rule of when to move your stop to break-even?
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.
There are 2 base reasons why Investors won't take a loss:
1. Inability to admit they are wrong.
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.
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. Their portfolio, because of its size, can take a hit that big.
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.
Are you squirming in your seat because as you read this article you feel powerless and/or angry? That is a good thing. It tells you that you are ready to make the 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.
Stay true to my tried and true ETF Trend Trading System and develop the habits of a winner. Apply yourself, ask questions, and observe your position size as it relates to your portfolio and your trading trends will move to the winning side.
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. - 23208
But, when we look at losing trades, most of the times it's not the strategy that has failed but, rather, the trader.
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.
If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you'll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.
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.
All professional traders understand they must know where they are getting out before they get in. They have to know ahead of time what a wrong trade looks like so they can exit it quickly. This is a rudimentary fundamental that EVERY professional trader knows the answer to.
Are you able to respond to these questions?
1.) What are the indicators for staying put, or getting out?
2.) When a stock is losing, do you have a guide that lets you know when to sell?
3.) Do you have a rule of when to move your stop to break-even?
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.
There are 2 base reasons why Investors won't take a loss:
1. Inability to admit they are wrong.
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.
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. Their portfolio, because of its size, can take a hit that big.
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.
Are you squirming in your seat because as you read this article you feel powerless and/or angry? That is a good thing. It tells you that you are ready to make the 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.
Stay true to my tried and true ETF Trend Trading System and develop the habits of a winner. Apply yourself, ask questions, and observe your position size as it relates to your portfolio and your trading trends will move to the winning side.
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. - 23208
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posted by X - Men @ 5:47 AM
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