Today we are sharing one of our Premium Member articles from our Motivation, Inspiration and Strategy Channel. We use this topic to discuss important psychological and strategic concepts. This post was too good not to share to the blog.
A losing trade and a bad trade are not the same thing.
Sure, when you look at a losing trade, you might feel bad, but should you?
The question isn’t whether you won or lost the trade, but rather whether you followed the plan.
Is a losing trade a bad trade if you did everything right? Not even close.
When you review your trade journals, you should firstly assess your losing trades of course, because these are the exact trades that lost you capital. However during that assessment, look at the charts and ask your honestly - if that trade came up again today, would you take it? If the answer is yes, it’s not a bad trade, it’s just a losing trade.
A bad trade is one where you went rogue, you got emotional, you had fomo, you entered too early, you entered too late, you followed someone else, you took a punt. A bad trade is gambling, not trading. A losing trade that followed the rules is still trading.
Remember that trading is a business. If you’ve ever been in business you know that you can make money every day. There are days where you will be down and there are days when you will be up, but overall your belief is that long term, your business will be successful. You don’t close a cafe the first day you don’t sell all the food. It’s just not realistic. You keep opening, you keep serving great food and you keep providing great service. In time, you win. I know this first hand.
Is it easy? Of course it’s not easy. You want to achieve a skill that 90% of the other traders failed at. Give yourself a break, accept there are losing days and move on. Put it behind you.
Instead judge yourself on your ability to manage risk, to find asymmetrical trades and to execute orders and positions like a machine.
Judge yourself not on one trade but on 100 trades. Use that risk management to buy yourself the time you need to find true success.
And a reminder, success is not those people in social media catching a rocket. Success is you consistently growing your account each month, little by little.
So do the hard work. Go through the journal. Find the losing trades, sure, but find the bad trades more importantly - and wipe them out. Identify your bad habits and kill them before they kill your account.
You have a team around you here at Market Mentor and our only goal is to help you win. So do the work, reach out to us and keep pushing ahead. If you consistently get better, you will find yourself in that top 10% looking back on the 90% who couldn’t be bother to do the work.
It’s yours if you want it, so go get it.