Learning-from-losing

 

 

 

 

 

 

 

 

 

 

 

“There are really four kinds of trades or bets: good bets, bad bets, winning bets, and losing bets.” – Larry Hite – See more at: http://www.donttalkaboutyourstocks.com/market-wizard-larry-hite/#sthash.TnGH3p64.dpuf

 

 “There are really four kinds of trades or bets: good bets, bad bets, winning bets, and losing bets.” – Larry Hite 

  1. How much B.S. is there on social media with fake gurus? I am well respected by many because I post my losing trades and they are shocked to see them, many fake traders must never admit to losers for this to be such a novelty. If a trader NEVER posts a losing trades then they are lying or will quickly compound their money to millions and billions of dollars.
  2. When I have a losing trade it is generally about a half% or 1% of my trading capital for the account I am trading it in don’t worry about me or stress for me, my risk of ruin is almost zero, I will be fine in the next short term trend.
  3. My short trades are generally about 1/5th the size of my long trades since that is my weak point.
  4. I do not regret my trades because when I took them they were valid entries for my method.
  5. I have losing streaks and draw downs from equity peaks and all real traders do eventually have these, the pretend traders don’t have to worry about such things.
  6. I do not trade with a lot of stress or anxiety because I do not trade too big.
  7. I do not let a losing trade interfere with my next trade, I forget it and open my mind to the next possibility.
  8. I am quick to exit a trade when price moves to a place that tells me I am wrong.
  9. I do not hold and hope for a rebound in my losing trade, I get the hell out of it.
  10. I never, ever, ever, add to a losing trade. When I am proven wrong I admit I am wrong and get out of it, not add and create an even bigger losing trade.

By Steve Burns

After a lifelong fascination with financial markets, Steve began investing in 1993 and trading his accounts in 1995. It was love at first trade. After more than 30 successful years in the markets, Steve now dedicates his time to helping traders improve their psychology and profitability. New Trader U offers an extensive blog resource with more than 4,000 original articles, online courses, and best-selling books covering various topics.