Losses are NECESSARY

“Losses are necessary, as long as they are associated with a technique to help you learn from them”

~David Sikhosana

Losses are a part of trading.

It's a common mistake to think that traders need to be correct all the time to make money.

In fact, after trading for some time you realize it's part of the game.

You can even make assumptions in real life and realize that you are wrong.

After trading professionally you realize it's ok to be wrong.

Being a professional is the acceptance of being wrong and embracing losses.

Losses are part of the learning process.

But you need a way of understanding losses and learning from them.

That's where your trading journal comes in.

I just talked with someone who DM'd me.

They had profitably demo traded for 6 months but they kept losing their ass in the live account.

I asked them if they have a trading journal.

They said no.

I asked, "WHY?".

Everyone needs a trading journal.

How else will you be able to reflect on what you're doing?

You're just going blind pressing buttons and hoping for the best.

Without a journal, you are literally trading unconsciously.

Your vises and disadvantages and psychological biases will constantly rule you.

You will lose.

And you'll have no idea why and have no way to learn or improve.

So remember, losses are part of the game.

You need to lose to win.

And make sure you have a trading journal that logs all your trades, what happens, why the trade failed, why the trade won, reflect on your trading day, reflect on your mental state, etc.

I hope this helps you on your journey to trading profitability.

Best Regards

Oliver