I don't understand why too many business expenses are a mistake. I can see where too many unnecessary business expences might be considered a mistake /like buying a new car because you can write it off / but carefully planned expenses, necessary to make a profit are part of doing business. I plan for 50% losses. I doesn't matter if they all come in a row or whether they come single file, at the end of the year I make the same amount of money.
Thank you. I appreciate it. I've been at this a long time. But I also need to thank the old timers like Dustin, Lescor and Szeven for the inspiration. We all used to post in the old P/L threads at the same time, but they would always kick my ass. And that motivated me even more. I also revisited a book about 10 years ago (I apologize. I can't remember the author's name. I gave the book away) called "Trading your way to financial freedom." I'm kind of a math geek, and the part which really caught my eye was the part about expectancy. The formula ((Prob of win x Avg Magnitude of win) - (Prob of loss x Avg Magnitude of loss)) = Outcome, made all the difference for me. Losses are a part of the game. If a trade goes against you, and you get stopped out, and it goes back in your favor, don't get sucked into the idea of averaging in on the next one. Just treat it like a mathematical game.
%% THAT looks right; +i noticed big difference between trend losses+ counter-trend losses. Some losses are really not even losses; a good timber harvest may look like a loss to some/LOL. It Really that is win/win/ win/win......... Whitetail deer+ other wildlife need that '' edge'' produced by a planned timber clear cut or select cut
Geez I hate to ask but why is there a big difference in trend and counter trend losses? Don't you control when and how much you lose? Timber harvest is like trading. Some have to lose for others to win. Why do I get the impression that you're one of the villians hunting Bambi's mother?
%% I have to respectfully disagree. No business has to have a loser just because someone wins. [You may be able to find something to prove your point; but i can find many more examples of the following points] IT's a commonly promoted falsehood that business is like a pie/LOL; as if i get 75% of a pie, that only leaves 25% for some one else. LOL. Yes i have seen pie charts. Business is like , we get to open a bakery+ make/bake all the product we want.
It's nice that you respectfully disagree rather than telling me that I'm full of whatever. But we are talking about trading and harvesting timber. Someone has to lose in order for someone else to win. I can see a business that provides a service being win/win but not trading or timber harvesting.
%% DR Van Tharp/an unusual counsellor\ most are so full of what an elite trader named ''pschoBABBLE=useless\LOL . Maybe not the best name for a book ''TrADE Your Way to Financial Freedom. Great Book anyway. Some of the market patterns are what Molly @ NPR called ''crazy'' I would NEVER use that word for markets/LOL; but my insurance co PROgressive mailed me a paper with auto insurance/they have a 50% page of other insurance companies\ each with a different name. Some could call that crazy.LOL
%% SOME stranger asked me,MAY,2022 if i ''owned property with a dead oak tree '' [next to me ] I told that old timer the logger that did + told him to ask the logger / no way was the logger going to use the smaller branches........................................................................................[WIN/WIN/win /win] I remember when i was kid my banker dad took us to see DISney films like Old Yellar'' , ''Legend of LOBO'' + Bambi. Bambi i remember as a kid something waaaaaaaaaaaaayw wrong with it/anti- hunting propaganda ; now i know that . As a kid my banker dad hunter never even saw fit to rebuke that propaganda/LOL .No wonder DISney stock is rightly being attacked\smacked by bears About the only good thing about a bear market\ its a trading marlet or suuuuuuuuuuuuuuuuper long term inevstment/buy every month for 40 years/millionaire method.
losses is a very common thing that we cant avoid , its not a big deal the main deal is how to deal with it.
As long as you’re learning from your failures, you are never losing. A wise trader once said to me, “if you are neither making money nor learning, you are failing as a trader.” So make the best out of each trade.