Ok, so no trader truly enjoys taking a losing trade. But if you want to succeed in this business of day trading, learning to love your losers (or at least accepting them) is one of the most important lessons you can learn. Psychologically, human beings are not well designed for trading financial markets. We hate losing, we hate being wrong, and we get buffeted about by those twin emotions - fear and greed. This leads us into all sorts of self destructive habits. Moving stop losses further out - just to give the trade time to turn round. Or grabbing a profit as soon as it appears - just in case we have to give it back.
The simple fact is that most successful traders lose as many, more likely more, trades as they win. What separates them from the rest is their ability to cut a losing position and run a winner for as long as possible. The arithmetic is simple. If your average winner is twice the size of your average loser, then you can be wrong on 50% of your trades and still make very good money.
In fact, you can be wrong 66% of the time and still break even. Improve the ratio by more than two to one and you can make massive amounts of money in the markets. Unless you can learn the art of letting winners run and cutting your losers short, you will never get those big winners that make the difference, and you will never reach that magical relationship where your average win is at least twice as big as your average loss. This fundamental concept holds true no matter what time frame you trade and whether you're a day trader, swing trader, or even if hold your trades for over a year.
The key to reaching this state of affairs is to develop or adopt a high probability trading system and stick to it. The more you can automate the trading process, the less likely you will fall into bad habits. This will take the psychological problems away and allow you to be less controlled by your emotions.
So don't be afraid of losing trades. They are part and parcel of this business. Learn techniques that will allow you to minimize and control them and the profitability of your trading will improve more than you can imagine. Fail to master this concept and you set yourself up for disappointment and frustration.
Of course, getting the mental bit right is only part of the answer. There is a plethora of moving parts when it comes to trading. Learning how to pick good trades, understanding entry and exit signals, and spotting when a move is coming to an end are vitally important, too.
Learn To Love Someone
Socrates one of history's greatest teachers said, "One could not find a better helper for human nature than love". So why aren't we teaching about love?
Why learn about love? Don't people know what they need to know naturally? Isn't understanding love, a kind of sixth sense that humans are born with?
It is possible that some of us learn what we need to know about love very early on in our lives. There is also a good bit of current research that implies human biochemistry opens us naturally to experiencing many of the emotions associated with love.
But, for most of us our early experiences with love are traumatic rollercoaster rides of confusing feelings and emotions. Unfortunately, for a variety of reasons the lessons of love can be very difficult. We often can get caught in the same cycle of misunderstanding, pain and confusion for years. We can make the same mistakes in our romantic relationships over and over again, never quite learning the lesson being taught. Eventually, with a little luck, wisdom and age win out and we begin to understand what love and a healthy romantic relationship can be.
Humans learn everything including what they come to understand about love by trial and error. Try and fail, apply what is learned and try again eventually this sequence leads to understanding. It doesn't matter whether it is phonics, math, shooting baskets or love the sequence is the same. The only real variable is the length of the sequence. How many times does it take to learn the lesson?
This is where the value of education and teaching play into the equation. A good teacher and properly applied educational strategies can make the time and effort required to learn shorter and dramatically easier. Love is at the core of our most important and desired emotional experiences. But, there are no schools or formal classes one can enroll in to learn about love. We leave learning about the most important human experience love, to chance and put up with the confusion, frustration, pain and difficulties that result.
Imagine the benefit of even an introductory course about love. Education is about providing appropriately organized information and setting up the circumstances for students to effectively move through a sequence of trial and error to arrive at new understanding.
Just a basic course providing an understanding of the history and physiology of love could help clarify the notion of love and perhaps save years of mistake and heartache. What could be learned from an introductory course on love could be important in every decision and relationship people will make during the rest of their life.
Why not learn about love the personal, social, and cultural benefit accrued by every student contributes immeasurably to everyone's future.
Both Leroy Rushing & Mary Bush are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Leroy Rushing has sinced written about articles on various topics from Anger Control, Day Trading and Bear Stock Market. About the Author:Leroy Rushing is an active, professional day trader; trading coach; and eBook author. He is the Founder and CEO of , a distingui. Leroy Rushing's top article generates over 8100 views. to your Favourites.