Weekly Thought: Losing As Part Of The Plan

Most beginners like I used to be and sometimes still do it don't think losing as a part of the game. Losing is part of the plan, just like business having an expense as part of the game itself.

Most of beginners wondering if they did something wrong after the losing streaks. They thought the flase lies on their system. Well it probably right. But most of the time it's because of lacking discipline and patience doing the system.

Have you ever reviewed your own system weekly after dreadful losses and find out that if you stick to the system, it won't happen too disastrous? I saw it over and over again.

Losing as a part of the plan is accepting and embraces there will be losses. It's like business on bad season. Less customers, less profit. While the operation cost still going, all you have to do is doing more efficient like closing the business early, reduce stocks, etc.

Now in trading, there's also something to do in difficult times. Some of them are reducing sizes, less trades, or profiting more early and close for the day. The important part is doing the losing as small as it can be, just like business reducing the cost.

Important aspects for doing this are size, stop losses, and profit taking. Waiting for big profit taking is not greedy. In fact, it's adding some insurance for bad days which sure to come. For example profiting $600, -$200, $-100, -$200, $800 are better than $200, $200, $200, $200, $100.
We're not blue collar worker for god's sake.
We may won't get paid for some days, but we'll sure receive some bonus on some other days.

For those of you looking for daily wages in this profession, you may survive. But you can't succeed. Why? Because you're making a habit for picking small changes and trust me, it's really really hard to let profit run if your subconscious mind doesn't say so.

For me, the best strategy is starting small and then after doing the right side, adding the position gradually for high reward low risk. It took guts to let go small profit to pursue the big one. Jesse Livermore did that.

Hope this useful, have a nice trade and Happy Labor Day for US citizens :)