How The Pros Minimize Losses?
Most investors think that professional traders win a lot and lose very infrequently. Nothing could be further from the truth. Many pros may have winning percentages barely better than 50%, yet they still make a lot of money. One key factor that separates the pros from the amateurs is that the pros lose small while the amateurs let losses get out of control. How you handle losing trades psychologically is critical to your ability to succeed in the markets. Losing properly (by losing small and continuing to take your trades) makes winning possible. You have to learning to accept your losses, because if you’re not willing to take the chance that a trade could lose a pre-defined amount, you’ll be afraid to trade or will be scared out of a good position as soon as you get a small profit. This defeats the goal to score big when you are right. A successful trader’s mindset must accept losses as a necessary and beneficial part of the trading process when handled properly. Here are several less
