Only take little losses (18 of 26)
- Two Big Trading tools (1 of 26)
- You get paid to wait (2 of 26)
- Chasing the Market (3 of 26)
- Always Scale Back When You are Trading Poorly (4 of 26)
- Never Turn a Winner into a Loser (5 of 26)
- Keep things in perspective (6 of 26)
- Develop a trading plan and Stick with it (7 of 26)
- Develop Your Own Style (8 of 26)
- Be Able to Trade Another Day (9 of 26)
- Develop the Skills to Trade Bigger (10 of 26)
- Stop The Pain Close the Losing Trades (11 of 26)
- The First Loss (12 of 26)
- Don’t Turn Your Trades into Religious Trades (13 of 26)
- Don’t Worry About the News (14 of 26)
- Speculators Always Lose (15 of 26)
- Become Good at Losing (16 of 26)
- Use Time to Monitor the Loss of a Trade (17 of 26)
- Only take little losses (18 of 26)
- The Money Pile (19 of 26)
- How to Hit a Homerun (20 of 26)
- Confidence & Control (21 of 26)
- Know When to Hold ‘em Know When to Fold ‘em (22 of 26)
- Be a Trading Machine (23 of 26)
- Be a Trade Taker Not a Trade Watcher (24 of 26)
- The Market Thinks All Traders Are The Same (25 of 26)
- The Market Does Not Care If We Win Or Lose (26 of 26)
A big win can take care of many small losses and a big loss can wipe out many small wins. It all boils down to money management, following some trading rules, and being disciplined. Enter a trade put on a stop loss take a small loss. -$8 Enter a trade put on a stop loss take some profit. $15 Enter a trade put on a stop loss take a small loss. -$5 Enter a trade put on a stop loss take a small loss. -$10 Enter a trade put on a stop loss take some profit. $4 Enter a trade put on a stop loss take some profit. $7 Enter a trade put on a stop loss take a big profit. $75 Enter a trade put on a stop loss take a small loss. -$15 Enter a trade put on a stop loss take a small loss. -$12 Net profit 5 losses 4 wins $51 Now change all the wins to losses and losses to wins and you have a negative ($51). Enter a trade put on a stop loss take some profit.. $8 Enter a trade put on a stop loss take a small loss. -$15 Enter a trade put on a stop loss take some profit.. $5 Enter a trade put on a stop loss take some profit. $10 Enter a trade put on a stop loss take a small loss. -$4 Enter a trade put on a stop loss take a small loss. -$7 Enter a trade put on a stop loss take a small loss. -$75 Enter a trade put on a stop loss take some profit. $15 Enter a trade put on a stop loss take some profit. $12 Net profit 4 losses 5 wins -$51 If you hadn’t taken the large loss you would be ok. What if you had only taken a $20 loss instead of a $75 loss how much would you have? You would have a $4 profit for the trades taken. Big losses prevent you from having a winning day. They wipe out too many small winners that you have worked so hard to get. Big losses also take their toll on you from a psychological and emotional standpoint. It takes a long time to get your confidence back after taking a big loss on a trade.
Tags: a little loss, Disciplined Trader Series, Money Management, The Disciplined Forex Trader, trading loss, turning a trade into a win. forex tips
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