GOOD AFTERNOON STEEMIT
So Steemit. What expectations have you set for yourself to come from trading?
I want you to just stop and take a minute to have a think about that question. Get out your trading journal and write down your expectations and what goes through your head when you're in a position.
We're then going to consider whether they're aligned with the reality of what you can or should realistically expect as a trader. They mean nothing to anyone but you and managing expectations, may be the key to taking your trading to the next level.
Winning or Losing is not Black or White
Tell me this. Do you see taking a loss as failing? How about two losses in a row, or even more? To you, is the act of closing a trade for a loss, failure?
I'm not talking about a big loss, just any loss. A loss where the actual dollar amount doesn't even matter to you, because a loss is a loss. The fact that any particular trade is on the red side of the ledger.
Are you someone who sees the act of taking a loss as a failure?
If you answered yes to the above, then most likely you've taken a loss and immediately tried to recoup it whether the trading setup is there or not. Most likely by immediately doubling down on the same setup and trying your luck with martingale.
Maybe you got away without taking a loss once or twice. Maybe even three or four times. But mark my words, you will lose, and you will lose big.
Taking losses is part of the game and if your expectations are that you can't lose, then you're destined to fail. Having unrealistic expectations around the black and white of winners and losers will destroy not only your trading account, but your will to persist as a trader.
It's time to change your expectations.
Adjust your Mindset
In trading, you can't afford to equate losses with failure. It just doesn't work like that.
If you do equate taking a loss with failure, then you're going to keep trying to double down in the hope that you're going to be right. But from that point on, that's all it is. Hope.
But successful trading isn't about having hope. It's about having a systematic approach to exploit your pre-determined edge over and over.
Think about it this way. You don't actually know which way the market is going to move. Nobody does. So if that's the case, you're going to take losses. A lot of losses!
And that's okay. It's actually a good thing.
Expecting to lose is the first step toward managing your expectations in a way that will keep you profitable over the long term.
Don't ever expect to not take a loss. Get real.
Best of probabilities to you.
Peace 🏻.
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