A nice trading quote.. (Must Read!)

Discussion in 'Trading' started by focusonmoney, Jul 27, 2011.

  1. A nice quote I got from the internet.. "if any budding trader reading this thinks that the best way to trade is to find a way to avoid taking losses, you're just not ready to trade at all.

    Losses aren't mistakes, they aren't 'bad' investments, they're not disasters - they're just overheads like your power and phone line and your computer. They are part of a trading year and should be covered in your trading plan. Failing to manage losses IS a disaster of course, as are (at the risk of sounding arrogant) refusal to accurately recognise your environment and to learn from it."

    The reason why I'm posting this is because I think a lot of traders let their losses get to them.. Some people actually trade without stops just to avoid losing.. But like the guy said, losses are part of trading..
  2. Bob111


    assuming you have one. on top of that assuming your plan doesn't involve any extreme margin. i never understand guys,who for a few pennies taking large position. one halt on middle of the day and then few % in opposite direction-and you are gone forever. this is just one example of situation, where you losses became unmanageable.
  3. Do not count mistakes as a negative one. It will serve as a challenge on how you will stand again. Just like what others say “Learn from your mistakes".