Saturday, April 21, 2018

Accepting Randomness (aka Losing is Winning!)

Losing trades are a natural part of my trading plan.  I find it easy to lose this perspective when I am in a trade or immediately after the stop is hit.

Why did the transaction not work?

Was there something I missed in the analysis or preparation?

The truth is the losing trade is most often simply just a losing trade.  I've had them before and will have them again.

The pattern of winning and losing trades is unknown

An individual loss is simply just one of the L’s in the series.

I need to remind myself of this once in a while.  It is easy to lose this perspective, especially in the heat of the moment after either a win or a loss.

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