You Won’t Be Successful Until You’re Ok With Losing!

 

A VERY common theme amongst the email Q&A I get from new and developing traders is the frustration that comes from having a losing trade.

They typically want to know where they went wrong. Or what they should have done better.

Often though… there was NOTHING wrong.

Losses happen.

Seriously!

This is not a game of winning every trade.

Trades are not taken because of any belief in certainty; but rather because our assessment of the odds and potential payoff deems them to be worth the risk.

And success comes through managing both winners and losers, such that we profit over a series of trades.

Winners AND losers.

You will get both.

Sometimes they lose:

You won't be successful until you're ok with losing

You won't be successful until you're ok with losing

You won't be successful until you're ok with losing

You won't be successful until you're ok with losing

Sometimes they win:

You won't be successful until you're ok with losing

You won't be successful until you're ok with losing

You won't be successful until you're ok with losing 

Sometimes they lose. Sometimes they win.

What if instead of hoping every trade would win, you could be happy with a win rate of just 50%?

Seriously!

It's enough!

You might get slightly more. Or slightly less. That's fine. It's still enough.

Just ensure you work on keeping the average win larger than the average loss.

Happy trading,

Lance Beggs

 


 

Written by

YourTradingCoach - Admin

6 Comments to “You Won’t Be Successful Until You’re Ok With Losing!”

  1. mohamed says:

    Hello lance ,
    what do you mean by average loss and average win can you tell me how you calculate it

    thanks
    Mohamed

    • Lance Beggs says:

      Take a series of trades (20 minimum but ideally more). Add up all the loses and divide by the number of losses. This is your average loss. Add up all the winners and divide by the number of winners. This is your average win.

  2. pat says:

    You are absolutely right MR Beggs. I still have a perfectionist streak but now realize the world is grey, not black and white. This has helped me not get into a funk over one loss etc. ty for your posts i really enjoy their sense

  3. Clodualdo says:

    Hi Mr. Lance,

    How many pips is to your usual stoploss.

    Regards,
    Clodualdo

    • Lance Beggs says:

      Hi Clodualdo,

      Stops are dependent upon price action, placed at a location that should not be hit while the trade premise remains valid. So beyond recent swing highs/lows or significant bar highs/lows.

      Typically 5-8 ticks though.

      (Note: It’s ticks in futures, not pips)

      Cheers,
      Lance

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