Handling Losses Properly

Losses are a part of trading. No matter how good you are, you're going to take them. What matters isn’t avoiding losses, it’s how you respond when they happen.

Key things to remember:

  • Losses aren't personal. Losing doesn’t mean you're bad at trading. It's part of the game. Even the best traders lose often.

  • No revenge trading. After a loss, it’s tempting to "make it back" quickly. This almost always leads to even bigger mistakes. Step back instead.

  • Review every loss. Was it a bad trade, or just a good trade that didn’t work out? Learning from losses is what actually makes you better over time.

  • Accept risk before you enter. If you can’t emotionally handle losing what you’re risking, you're probably sizing too big.

  • Move on. One loss doesn't define you. Don't let it sit in your head. Focus on the next good setup.

Bottom line: Losses are tuition. Pay it, learn the lesson, and keep moving forward.