How to handle Trading losses that are not so ' torture '

Thursday, December 23, 2010

If you enter a trade knows it is only 2 results, whether they are profitable commercial or vice versa. Since this is a 50% probability score, why is it so difficult to accept the other outcome 50% that won't be our way? Since we know that commercial losses are inevitable, there is no way we can handle so that it is not so much ' painful '?

Some says that the trading is a business. In an enterprise, it is always a cost and delivery charges before you make your product/service you are selling. These costs and charges are known as the commercial loss whenever your transactions. Sounds logical. But why is it sometimes that such costs and expenses keep piling up continuously without any gains to offset part of the key. This continuous trading losses is no reason why some altogether the negotiation if not handled very well. Start the loss of confidence in the way that your trade, thinking maybe the strategies no longer work. Give and get another Holy Grail, and cycles repeat over and over again.

Trading is TRUE, a serious business. Everything is serious when it comes to money profit and lost. However, trading can be fun too. It is always better to mix a bit of fun on your traded so that you will not receive any serious burden due to the damage. Indeed, how we think affects how we perform.

You can imagine the negotiation as fisheries. When fishing, it will be checked when the tide is coming, what area is a better fishing spot, what kind of fish we target and we buy the baits specifically for this. After that, we simply sit patiently wait for fish to suck our bait. Just as in trading market will decide what to get, what time zone is a marketing best, what is the size of the position to insert depending on the amount your stop loss, then I wait patiently for your favorite price pattern to appear.

Sometimes the bait is gone, sometimes eaten by smaller fish or fish which you don't want. Worse sometimes stuck and you may need to cut off part of fishing line. But when I catch of the day, all the time, the loss of baits and string is longer than worthwhile! Similarly, when you are able to hit home run trading margin covering more than all the small little commercial losses along the way, you may be aware that it is all worthwhile and entertaining.

To put so little imagination to your business transactions to make it more fun. Use creative analogy to liken transactions your business into something that you can agree and believe in. You won't make the other 50% probability goes away, but at least it makes it more acceptable for the piece of which is between the ears!


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