Dealing with a loss is never easy, no serious trader likes to lose. You can either learn and earn from each experience and get smarter with your trading or you can become a victim and wait for the market to gobble you up again the next time. Losing is part of the game we play, it can be frustrating and for some it can be demoralising and a major self-confidence blow. 95% of the market is playing the “I’m a winner, I’m a loser game” and that’s why the vast majority of novice traders cannot make money. Trading is simply a game of numbers; the losing amounts cannot exceed the winning amounts over a series of trades. That’s it! No more complex than that, and if you think successful traders have better systems, then you are wrong. What they have is mental strength to play the numbers game correctly.

The game is to figure out how to win more than you lose. It’s not about how many times you win and how many times you lose, it’s about how much you win when you win and how little you lose when you lose. The best traders at Ltg Goldrock don’t have superior systems they are playing, sure some systems are better than others in certain market conditions in certain years. The difference over time lies in their ability to continually execute a simple plan on a simple trade setup that wins more money on the winning trades than it loses on the losing trades. They look long term and they don’t fall into the novice “I’m a winner, I’m a loser” mentality.

Your job as a trader when you lose is to figure out what you might have done wrong and to work out how you can trade your system better next time to win more than you lose. What can you do differently next time, how can you behave better and how can you stay in the trade to get the desired targets? Not win more trades! Win more money on the winners and lose less money on the losers. The investment bankers who I work with and speak to every day, traders who trade tens of millions of dollars and make big bucks are correct around 50% of the time on their trades. How do they make so much money? They simply win more than they lose. Period.

If you are smart you won’t view losses as the end of the world but part of learning the game. As a trader, you are expected to lose money when you trade, but the losses must be limited to 1% per trade or less and you must win on average more than you lose. Just do it and watch the foundation for your future success grow quickly. View the losing trades as the lessons you need to take your trading game to a new higher level.

One trade at a time. Go get ’em!

About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts, and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular key-note speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

If you would like to speak to one of our Senior Client Advisors regarding the relative client opportunities offered at LTG GoldRock and how you can follow along with our Professional traders each day in our live trading room please contact us today or you can register for one of our a live coaching and trading webinars by clicking here.

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