Losing streaks and losses are all part of the business of trading. No matter what style of trading you use, you need to learn how to deal with losses. Some of these losses can be painful, yet we still need to have strategies to help overcome those painful lessons and move on to the next trade.
In this video, Darryl Nagel talks about the psychology of trading in relation to losing trades and most importantly, how to overcome the pain associated with those losing trades.
You will learn two powerful words you can use to help you move on faster from losses in trading. This will allow you to accept those losses and to better manage your emotions when it comes to trading the global markets.
Click play on the video below to watch the training.
Welcome. My name is Darryl Nagel. And in this video, I want to talk about the concept of losses. How do you feel when you have a losing trade? It's not pleasant, is it? And in fact you often feel not only emotional but physical pain. And so what many traders try to do is to avoid losses or at least minimize them. And that minimizing losses is obviously proven, but I've been trading since 1986. I've been teaching and coaching since 2003. And over that period of time, traders have said to me, that losses is probably the one area that they find really challenging when not trading. And it's understandable. It's normal because we don't want to experience emotional nor physical pain. I've come across traders. Who've lost an incredible amount of money. They've actually lost their, their marriage. It's been a disaster for them, but it doesn't have to be.
You say because what many of them do is when they have a small loss, they end up having larger losses because they want to avoid losses. Now for me, I take a rather unique and revolutionary approach to losses because to me a loss on my next trade is perfectly okay. You might say, wow, how could that be? Because it's a natural and normal event to have losses. And in fact, you should say two words. When you have a losing trade, what are those two words? Thank you. Because if you're going long, in other words, you all looking at a trade where the prices are going up and the market reverses and takes out your stop loss or a trailing stop. What is the market telling you? It's telling you that the market is no longer bullish. So what does some people do? They want to move their losses or they don't have a stop loss at all, because I don't want to take a loss.
Now. Sometimes they get away with that until I caught. So if you've got a trading plan that gives you an edge and you're taking a significant number of trades, you can relax and accept losses as a natural and normal event. Not to be managed, not to be avoided, but to accept. And it's hard. It's, it's, counter-intuitive, I've met. I'm like everybody else in trading. I don't, I certainly don't like taking losses, but I know that I've got tools to be able to say to myself, if I don't like losses, then I'm not thinking in terms of probability. I'm thinking in terms of certainty, I want this next trade to be a winner.
So I'm not saying it's easy, but I think it's important for you as a trader to embrace your losses. And certainly if you feel that you don't have a trading plan, that's giving you an edge. We'll go to an educator, go to somebody who is not a marketer, but go to an educator who actually trades. This is important. Go to educators that actually trade, not the educators who are purely marketers and just salesmen to be blunt. And there are plenty of educators who are fair dinkum traders, and they will assist you to ensure that you've got a trading plan that gives you an age. That way you will be able to make trading your business. Thank you.
Darryl Nagel has over 40 years of experience in the markets and has taught many people on the skills necessary to trade the global markets full-time.
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