A lot of traders lose money. There’s nothing wrong with losing. It happens to everyone, especially in the beginning. Where it gets to be inexcusable is when a trader learns nothing from his or her losses. Losing is the best lesson there is.
Now, you can’t get worked up with any loss. No system, no matter how good it is is foolproof. You will experience the occasional loss no matter how good a trader you are. It’s when you lose often or just more than you win that you need to be able to stop and think about what you’re doing.
This is where the mental edge of a lot of traders falters. A lot of traders have this inner belief that they will somehow do better on the next trade or in the near future even when they change nothing about their trading method, learn nothing new, or do anything different.
Why they believe that they’ll begin to win all of a sudden is beyond me. 9 times out of 10 they continue to lose.
This is what I call Forex Denial: the belief that by some mysterious force your luck will turn around on the next trade. Forex isn’t a casino. It’s a trading arena and you need to trade smart or you will lose your shirt.
I want you to learn more from your losses than your wins. Anyone can win a trade here and there. It’s knowing how to cut down losses that’s important.
So, make a pact with yourself to not fall prey to Forex Denial. If you’re losing often then there’s something wrong and you need to change it fast. If not, you’ve only got yourself to blame for suffering more and more losses.
Everyone can become a better trader. It’s all about learning from your losses and taking the right action to make sure that you’re not repeating the mistakes that may have brought them about.
