What Are You So Afraid Of Losing?
"You are afraid of dying. But, come now, how is this life of yours anything but death?"
— Seneca, Moral Letters
We seem to be back to fear of death again, when reading today's meditation and obviously this is no real comparison to trading.
If we look at the title as a question to traders; "What are you so afraid of losing?" The answer would be your trading bank. It's quite simple really; without your trading bank, you can't trade!
This is why we must protect our trading bank at all times.
We use the historical stats/data that we have available to us and we also ensure that all potential trades fully meet the rules criteria for our strategies, before we consider executing a trade.
This narrows down our selection process, leaving us with a few quality trades, rather than a lot more questionable ones!
Quality over quantity means that we are going to be right in our assumptions, many more times than when it goes wrong! As long as we can react quickly enough to exit for a controlled loss at our pre-agreed exit point, (you should know this before you enter a trade) we will be profitable long term because the profitable trades will far outweigh the occasional controlled loss.
When we start out on our trading journey, we are afraid of losing and this is only natural of course, as our brains are not wired to willingly take losses. Once the penny drops and we realise that taking controlled losses occasionally, is all part of the master plan to achieve long term profitability, we can become more comfortable and the fear of losing eases. We realise that we are in control of our own destiny, to make the right decisions, by reacting swiftly and decisively without hesitation, when a trade is going against us.
The more we practice doing this, the better and more confident and consistent we will become.
If you put in the repetitive hard work, you will be rewarded for your endeavours, I promise you!
You can do it; you've got this; so "what are you so afraid of losing?"