Losing always has an effect of dampening your spirits and/or making you start to question your method. I'm still in a positive frame of mind, but this post is to remind myself about how i can deal with it in the future.
1) Losses are part of a winning plan
- No system produces a 100% winning rate. Even the best traders knock out winning percentages between 30-50%.
2) Money management will see you through the end
- As long as you keep your losses to a minimum, and your winners maximised, you will come out tops.
- (My previous wins were at least 3R, and these 2 BNI positions combined produced a 1R loss)
3) Think objectively about the losing trades
- If you stuck to your rules, it's part of the plan.
- If you broke them, DON'T DO IT THE NEXT TIME.
- (In BNI's case, i was trying to 'predict' when the SPX rally will come, and both times, the stock price just followed alongside the indice, which tanked)
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