Thursday, September 7, 2017

How Learning To Deal With a Loss

There is no doubt that my biggest psychological enemy in trading is the fear from losses. Handling losses properly could be the first step overcome this fear. 

There is a great post about the issue on Some key points:

"Recognizing your reactions is the easy part. The hard part is recognizing the part between the triggering event and your reaction."

"To become successful as a trader, you must put yourself into situations that will bring pain, suffering, and loss."
"So how do you stop this invisible force that seeks to protect you at the expense of financial disaster? You can’t."
"So if can’t we defeat ourselves or those defense mechanisms, what do we do? You learn to be aware. Sometimes, just being aware of what we are thinking and the feeling is enough to stop our reactions from hurting our trading. This is difficult for people to do, to be aware."

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