3 More things that my losses have taught me

I have been a consistently profitable trader for many years. I have gained countless experiences during my trading career. Now I make an effort in sharing the knowledge I have gained with those who are still learning the ropes of this unique career path. Trading has learnt me many lessons. Even though I have seen great success in trading, making losses is part of the game, and regardless of how successful a trader is, there is not a single trader that is not making losses. As a matter of fact, the losses I have made taught me some of the most valuable lessons.

It is not about being right:

What I see the most in this space is that people seem attracted to the opportunity to say: Exactly as predicted. However, what is much more important, is to accept you can be wrong. In this way you can be wrong, and still trade successfully. The quicker you accept your mistake, the sooner you will recover from it and turn the tide.

Think in probabilities

Thinking in probabilities allows you to not marry your own bias. It is very human to want to feel security and certainty. One might go to great lengths to verify their decision and find reasons why price is certain to go up or down, and therefore it is a winning trade by default. This could not be further from the truth. There is no way that the outcome of a trade can ever be a certainty. So therefore, no trade can be without taking risk. The risk you put on essentially equals a protection mechanic in case the trade does not work out. By taking the risk, and accepting the risk before you put on the trade, you also accept that the trade might not work out. This is when you think about probabilities.

Avoid revenge trading

Once you have made a loss, avoid the urge to try and make the money back right away. Accept that if you take a loss, there is something you have missed. So analyze your situation, learn from your mistake and sync up with the market before attempting a new trade. Trying to make back your losses immediately leads to emotional trading, which means you trade without thinking. That is a quick way to deflating your portfolio.

Losing does not mean failure

Taking a losing trade hits you in your wallet. If you have proper risk management, this should be accounted for and not a problem. On the emotional side, this might make you feel demotivated, or class your efforts as a failure. However, I firmly believe that every failure is a great learning opportunity, and if you are able to figure out what went wrong, and why it went wrong you have a powerful insight in how you can improve. That is what I would class as a valuable learning moment, rather then a loss or failure.

Looking to know more? Follow me on twitter: https://twitter.com/ccpool_mike

Get started on Bitget through this referral and get up to 3000 USDT payback: https://partner.bitget.com/bg/footyfloors


The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.

All opinions expressed on Bitget’s Soapbox (also known as the ‘Soapbox’) are opinions of individual traders using the Bitget platform, and do not reflect the opinions of Bitget or its affiliate companies and partners. The Soapbox author’s opinions are based upon information they confirm to be reliable, but neither Bitget nor its affiliates warrant its complete accuracy, and it should not be relied upon as such.