Traders Not Trades Bring Wins or Losses

You know the difference between winning and losing trades — we’ve all experienced both and know the joy and the pain well.

However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.

Uh huh… that is most likely you! However, help is on the way…. I am going to discuss ways to stop financial losses, and begin being a winner at the trades. Prior to placing orders, you have to decide where your stop loss order will be placed.

If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you’ll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.

When you have a plan for placing stops, your wins will out weigh you losses, and when the losses come you will come out on top because you will still be around to trade. The traders psychology of loss taking bears looking at here.

A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.

Can you answer the following questions?

1.) How do you know if you should sit tight or cut your losses?

2.) Do you have a rule to tell you when to sell a losing stock?

3.) Is there a set point for you to break-even by moving your stop?

If you can’t answer these questions, you’re not alone. And what it means is that you need to establish some rules for yourself, especially when you go to short stocks. But, all the trading rules in the world are meaningless if you don’t use them. That’s why you and I need to “talk turkey” about what’s really going on with you when you refuse to manage your risk in a proactive and professional way.

Refusal by an investor, to take a loss falls under two headings:

1. Inability to admit they are wrong.

Though not really avoidable, a loss is seen as a personal failure. This is a painful thing to admit for a large portion of traders, like it illustrates failure at life. It also takes away from their positive self image.

A trader like this experiences real pain from the loss, and would rather deny it than fess up to the fact that it is giving them the pain. Quite often it requires a total loss before he can begin to change. To quit trading is the only other alternative.

2. The losing position is too big relative to their overall portfolio value so they can’t afford take the loss.

But in reality, there’s no such thing as just a paper loss. The stock (bond, option) is worth what it’s quoted and the loss exists whether you realize it or not.

These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.

Are you feeling uncomfortable with what I am saying?… or powerless, or angry? Good! That is a sign that you are capable of making the changes you need to.

A winning trader will have a different view of losses than a losing trader. He doesn’t take it personally. He takes it as a sign that he needs to revamp his approach or execution no that it is a sign that he as a person is lacking.

Winning traders separate who they are from what they do. They know, or learn, that their trading faults lies in their approach or their skill level but not in their fundamental worth as a person. The pain they feel is quickly transmuted into motivation, which fuels their desire and determination to become a better trader.

These are responses you learn and you can control them. Losses bring pain AND the possibility for growth. It is all in what action we take after the pain comes that is most important, not the actual losses.

Stay true to my tried and true ETF Trend Trading System and develop the habits of a winner. Apply yourself, ask questions, and observe your position size as it relates to your portfolio and your trading trends will move to the winning side.

My constant reminders about proper stops and risks are one of the strongest parts of my one year mentorship program. Even after you understand my system 100%, it’s still good to hear me tell you, “Don’t move your stop” or “Be sure to take profits when the system says to, not too early and not too late.” Most my students like the mentorship part as much or even more than the course itself.

Learn how it’s very possible to make 6% per month in your investment accounts using etf trading! “Big A” is a recognized expert in the world of etf trading system & reveals etf secrets that have been kept under wraps by hedge traders for years. Give him your email & get a free report & webinar today!