The joy of losing trades.

This might sound bizarre to new traders. But until you get into your head that losing trades is good, you will endlessly poor money into trades and get margin called (this is when your broker closes your trades because of the risk to your margin) on your trades.

Traders lose trades because:-

1. They were wrong about the trades direction.
2. Something happened that was unexpected that moved the market against them.
3. They are too close to a fib line, option contract, or target.
4. They do not know where there stop is, so the pour money in, keep moving the stop down.
5. You traded into a major news announcement.

You do not realise that the key to winning some trades is losing others, the key to winning more trades is knowing where the market is going and staying with it, I put only two or three trades maximum on a day. I NEVER touch my stop loss. Because I have worked out WHY the stop loss should be where it is

If you have 10 trades and lose 4 of them you still win 6, by maximising your profits with 50 to 100 pip profits against 35 pip losses you will have a profitable account. I don’t know of any trader who gets profits ALL the time. That is not the real world.

Plan your trades, understand your market, place them and if they lose, go look at why, what could you have done to have won the trade.

Congratulations on losing trades! The more you lose, the more you learn and the more profitable your account will be.

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