3 Things Losing Trades Can Teach You
I have been a consistently profitable trader for many years. I have gained countless experiences during my trading career. Now I make an effort in sharing the knowledge I have gained with those who are still learning the ropes of this unique career path. Trading has learnt me many lessons. Even though I have seen great success in trading, making losses is part of the game, and regardless of how successful a trader is, there is not a single trader that is not making losses. As a matter of fact, the losses I have made taught me some of the most valuable lessons.
Get rid of emotions
Trading can be an exciting game. Naturally, we feel good when we win, and bad when we lose. In trading, you need to be able to not feel anything when winning or losing. Whenever emotions get involved such as feeling good when you win, naturally you will ride a high that is unsustainable, and spiral into a depressive mood when losing. When your decision-making process is based on your emotional feelings you will quickly fall into a gambler's mindset, and make decisions without rationalizing your thoughts. This is a quick route to losing money faster than you earn it.
Do not get greedy
After a winning streak, it is easy to fall into a similar mind trap. You will likely think you understand, and play the game, and as a result, start to take on more risk. At some point you will take a loss unavoidably, and trading a much larger size than usual, or not placing stop losses out of overconfidence can evaporate all the profits you made with hard work and effort in one moment.
Risk management
Before you enter into any kind of position, you are probably thinking about how much money you might make of this should the trade be successful. But have you also thought about how much you lose if your trade does not work out the way you anticipate? This is maybe even more important to consider when you think about the fact that with every loss you take, the risk you need to put on to make the same amount of money as you initially had in mind goes up. If you think about your potential loss first, this will help mitigate the damages, should you be wrong.
And a bonus one!
Stay Humble
Never assume you know everything. There is always something new to learn, seek inspiration from others, and support wherever you can. Everybody has started at the beginning, just like you once did. In the end, what is it all worth if there is no one to share it with?
Create a Bitget account through this referral link and receive up to $4000 in bonuses:
Website: https://partner.bitget.com/bg/ZZJ4YJ
Disclaimer:
The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.
All opinions expressed on Bitget’s Soapbox (also known as the ‘Soapbox’) are opinions of individual traders using the Bitget platform, and do not reflect the opinions of Bitget or its affiliate companies and partners. The Soapbox author’s opinions are based upon information they confirm to be reliable, but neither Bitget nor its affiliates warrant its complete accuracy, and it should not be relied upon as such.
