Don’t think about it too long. Yes, of course you’re going to lose money!
It sounds silly to even ask or to think about and yet so many traders secretly think they’re not going to lose money. They think they know what the market is going to do, and they’re going to jump on board and make some money.
The real question is, would you rather lose money that you consciously chose to lose through good planning, like using a stop? Or would you rather be in the middle of a trade you were hoping to win that went South, and now you’re making a panic decision about what to do and where to get out? Do you take the loss now or let it get bigger? Your heart is pounding and it’s hard to think straight! What are you going to do?
You know those trades where you hope to make money and you’re sure you’re going to– there’s no way you can lose. And then it goes against you? You feel sick to your stomach like you’re on a roller coaster! You try to figure out what to do in the middle of all the chaos, fear and anxiety.
This is a horrible place to be as a trader. Does this sound familiar? For some of you it will.
So, you can lose money consciously by choosing to stop yourself out, making the choice ahead of the trade. Making it from clarity and precision. Making it from what you’ve proven works in your trading plan. Or, you can lose money in the middle of panic, anxiety, and a roller coaster-like feeling.
If this is you, and you can admit it, then you can do something about it.
You can’t trade without losing now and then. It’s not possible. But, you can choose how and when you want to lose. Have you tried that?
I invite you to examine your own trading, and your trading plan, and assess which types of losses you’re taking and see how you can turn it around. Learn to take calculated, conscious losses.
I hope this helps. I’m available to talk with you about your specific trading situation if and when you’d like support.