IF YOU CAN'T AFFORD TO LOSE, DON'T TRADE

I know everybody who's trading understand the title's meaning. But I want to explore the depth of those words more thoroughly.

If your capital let's say $10.000 (pure assets, no debt inside) and you lose $100 per trade and you are jaded and start thinking what can you get from the money instead of giving it to the market then you can't afford to lose. I don't care if you have $1.000.000 but if you're angry for losing the $100, you can't afford to lose emotionally. Like uncle Scrooge paying two shilling for his friend's funeral.
This is the most difficult psychologic barrier for people trading. They don't want to lose. This is very true, even you said to yourself it's okay to lose sometimes, your mind doesn't accept it.

I lost thousands of dollar before I realize the very essential form of trading. YOU MUST LOSE.

So what's the characteristic trader who don't want to lose?
1. Breaking their Stop Loss.
2. Averaging Down.
3. Let Losses Run
4. Cut profit early
5. Overtrade.


I am not saying averaging down is a bad thing. The wrong thing to do about averaging down is to make it Break Even faster or making small profit. Sooner or later you will be wiped out, mostly sooner.

Here's some practice how to comfortably taking losses. Unfortunately there's no easy way to do it.
- Take entry randomly with very tight stop loss less than 0.5% of your account and let the profit run.
- Do it until you lose 10 times
- Sleep well

You are mostly got stopped out over and over. And if you don't sleep well then you are not ready to accept losses. If any of the trades don't stopped out, let it run until it's being stopped. It's suicidal I know but It's the only way to heal your mentality.

How much the cost? 5% of the capital. 99% traders if not 100% experienced more than 10% loss in just one trade. So the 5% is quite decent.

I do it. I do it over and over again until my mind accept those losses as part of business. After 3 years of trading, now I know hot to accept losses properly.

If you are not agree, then suit yourself. It's my method. If you want to do it, then go ahead. Feel the change in your mentality and the change in you. YOU MUST LEARN TO LOSE !