Let’s be clear: losses are not a problem. To look at them as problems is to take a wrong step. They’re part of this business. Everyone goes through them. You can’t avoid them. The best you can do is to minimise their impact through strategic risk management.
But, it’s true, even then, the act of taking a loss is inherently painful.
If you’ve watched the movie The Matrix, you are undoubtedly familiar with an iconic scene showing Neo and Morpheus going hand to hand.
At one point, we see a shot of Neo taking a big hit from Morpheus which causes him to fall to the ground. They then exchange the following dialogue:
Mark Douglas is certainly one of the greatest authors of trading psychology literature. For this post, I wanted to share a video interview he did for Wise Trade TV where he discusses his ideas about trading and the market in general. This is an interview you don’t want to miss. It is full of insights and will lead you to some AHA moments.
Wow! 2017 has been one hell of a year. My results for trading vary a lot from year to year. Some years I’m profitable, some years I’m not. This year has been phenomenal for me, especially on the day trading side.
In today’s post, I want to share a passage from my book, Zero To Hero.