Want to be a trader? Learn to be a loser...

tomorton

Legendary member
8,138 1,226
Good points CR.

In trading, you must accept a level of failure that would be unacceptable in other environments as being just a business overhead. You have to accept that perfectly applying a sound method will still not eliminate failures. Also that those failures will take the benefits of money away from you and your family.

Most new traders cannot accept the psychological damage that's part of trading and try to trade away from failure. This causes behaviour which increases risk, which eventually drives them out of trading.

Losses have to be kept small, but you have to love them because they just prove you're still in the game.
 

richieforex

Member
60 5
It is in our nature to want to be correct, you cannot win on every trade and this is what traders find hard to accept.

It is important to understand how many trades on average you are likely to lose before you get a winning trade to help deal with the losses. I have learnt to enjoy losing trades because I know the probability of the next trade being a winner is enhanced.

Win percentage however is irrelevant. Most of the traders I know have a win percentage of no more than 70% and some as low as 30%. The 30% are still profitable sometimes even more so than the 70%.

It is important to understand the mechanics which allow you to make money whilst still losing.
 

crestray

Junior member
12 0
Couldn't agree more. Win ratio is pretty irrelevant and that's what I was trying to highlight. If I have a system that HISTORICALLY has proven to make profitible trades 90% of the time, that doesn't tell me with any certainty whether my next trade will be profitible or not. What it may do however is lead me to take outsized risks under the assumption that there's a high certainty of it being a winner. That's where things can go wrong, quickly.

If you're going to bet the farm. Have two farms...


It is in our nature to want to be correct, you cannot win on every trade and this is what traders find hard to accept.

It is important to understand how many trades on average you are likely to lose before you get a winning trade to help deal with the losses. I have learnt to enjoy losing trades because I know the probability of the next trade being a winner is enhanced.

Win percentage however is irrelevant. Most of the traders I know have a win percentage of no more than 70% and some as low as 30%. The 30% are still profitable sometimes even more so than the 70%.

It is important to understand the mechanics which allow you to make money whilst still losing.
 

Svetlana Korj

Junior member
15 0
You must be able to react to failures right. Not only on forex. It is important not to lose heart, do not give up, and try to calm down and analyze your mistakes to avoid repeating them more. And then again to take a step forward. The main thing we must not let fear block and force us to turn back.
 

Charles Bronson

Member
75 12
Most don't have to learn to be losers, they already are as a result of their social conditioning. What we truly have to develop is how to be winners. It is a totally different way of being.

Losers and winners have a different view on losses. That view is what makes all the difference.

Losers create losses with occasional wins. Winners create winners with an occasional loss.
 
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Jason101

Experienced member
1,372 215
Most don't have to learn to be losers, they already are as a result of their social conditioning. What we truly have to develop is how to be winners. It is a totally different way of being.

Losers and winners have a different view on losses. That view is what makes all the difference.

Losers create losses with occasional wins. Winners create winners with an occasional loss.

But how is the years of social conditioning undone?
 

Charles Bronson

Member
75 12
But how is the years of social conditioning undone?

Thats like asking how long is a piece of string. The path is different for all of us our experiences are unique to us only. Too detailed to discuss here.

But a good way to start is to start becoming aware of your response patterns. The chances are they will be same responses to an emotion in different situations. Giving your self more options is a good way as it gets you thinking in a more adaptive mindset as opposed to old responses that may no longer serve you well. As with trading there are plenty of websites offering methods to help you do that. Lots of information is also free .Its up to you which one suits you best.
 

Jason101

Experienced member
1,372 215
But a good way to start is to start becoming aware of your response patterns. The chances are they will be same responses to an emotion in different situations. Giving your self more options is a good way as it gets you thinking in a more adaptive mindset as opposed to old responses that may no longer serve you well.

That's interesting because my next planned trading endeavour is in researching mindfulness and it's applications in trading.
 

Solas0077

Active member
236 14
Couldn't agree more. Win ratio is pretty irrelevant and that's what I was trying to highlight. If I have a system that HISTORICALLY has proven to make profitible trades 90% of the time, that doesn't tell me with any certainty whether my next trade will be profitible or not.


So you mean that instead of 90% you would go for 55%? I would think that the highest the win rate the highest the probability of winning all other things being equal.

There is no certainty in trading. You cannot use lack of "certainty" to argue against high win rate. Always base decision on forward trading, not historical. If you have traded two system live and one has win rate 90% and the other 55% then you should know which one is better.

Most experts will not agree with you also. See this article for example.
 

momothebored

Active member
139 1
That's not how any of this works. Trading is like a sport. You can't be a pessimist.

Right. Because you're OBVIOUSLY competent enough to tell people like it is.
HAAHAHAHAHAHAHAHAHAHAHAHHAHAHAHA :LOL:


Top trader making $700 in 10 trades and bragging about it online

Oh My God.

HAHAHAAHAHAHAHHAHAHAHAHAHAHAHAHAHHAA :LOL:
 

Lúidín

Established member
818 61
Right. Because you're OBVIOUSLY competent enough to tell people like it is.
HAAHAHAHAHAHAHAHAHAHAHAHHAHAHAHA :LOL:


Top trader making $700 in 10 trades and bragging about it online

Oh My God.

HAHAHAAHAHAHAHHAHAHAHAHAHAHAHAHAHHAA :LOL:

There is absolutely nothing wrong with making $700 with 10 trades.

10 trades for $700 profit can be opened and closed within the first 30 minutes of the US open.

That equates to an hourly rate of $1400 - a good junior barristers' pay level.

I am quite confident that if drtro can make $700 with 10 trades then he can easily make much more, if he is not doing so already.

Lúidín
 
 
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