How not to lose money

Discussion in 'Psychology' started by Ironplates, Jun 7, 2024.

  1. As a high-performance coach and trader, I'm intrigued by the psychological aspects of trading. I'm looking to gather ideas and feedback on the psychology of avoiding financial losses.

    What do you think are the most important psychological factors to consider? I'm interested in your insights, personal stories, and experiences.

    Your input could spark some great discussions and be valuable to many in our community.

    I'll add more myself along the way.

    Thanks in advance for sharing!
     
    ChipShotTrader likes this.
  2. tony.m

    tony.m

    Don't trade.
    Problem solved.
     
    tomas262, VPhantom, Badkarma and 6 others like this.
  3. 2rosy

    2rosy

    it's called being risk averse. if you never try you can never fail; winner
     
  4. Sprout

    Sprout

    Many consider losses as some type of reflection over their decision-making, their desire to be right and avoid the 'intolerance of uncertainty.'

    Unless they've worked out the max successive losses of their strategies, focus on execution/performance and play the numbers game, they will experience psychological discomfort.

    Losses is this profession are just business expenses.
     
    PPC, Lou Friedman, Ironplates and 2 others like this.
  5. MACD

    MACD

    Bravo! May not need any other posts to this thread as this sums up the Reality and change of the premise as stated by the OP
     
    SimpleMeLike and p0box4 like this.
  6. p0box4

    p0box4

    Avoiding losses in this business isn't possible, how you handle and react to them, that's the key.
     
    Last edited: Jun 7, 2024
    NDSQ, tomi01, Lou Friedman and 2 others like this.
  7. Good Morning Ironplates,

    Can you please explain a bit more what you mean by "How not to lose money"?

    Are you referring to how not to lose money overall in your trading or how to avoid a loss on any trade you take?
     
  8. MarkBrown

    MarkBrown

    it's statistics you either accept that or not.
     
  9. Handle123

    Handle123

    95% of "trading" is not trading at all. Everything circles around STATS..which most traders don't do. System design is long process and often fails and fails and fails and fails etc years goes by till you start understanding the "game". Most design to reap greatest profits, I design for lowest drawdowns. You can learn much from retail who lose much of the time.
     
    MACD, Cabin1111, beginner66 and 3 others like this.
  10. I'm more interested in the mindset behind [not losing money] beliefs, references, labels, and feelings, emotions, and even the role ones relationship with money can have.
     
    #10     Jun 7, 2024
    SimpleMeLike likes this.