Let’s talk about losses.

February 2, 2014 at 1:42 am
In trading, losses are the inevitable part of the game. Every business has its expenses. In trading, losses are the major part of your business expenses and they must be treated that way.
First reactions of inexperienced traders to losses are anger, frustration, revenge, and such. Beware of trying to get even with the market. That is exactly how trading accounts get wiped out.
In the history of human kind there never was a person who could predict markets for a reasonably long period of time. Just accept that fact and be humble. I never even try to predict the market, I just try to make my odds of being on the right side of the market higher than 50% and preferably more. But I do realize that I will never achieve a 100% winning rate.
Learn from all your trades. At the end of every week, go over each trade you made and examine it carefully. Could you have done better? Could you make more money or lose less? Did you follow your trading system? Were you emotional when you placed those trades? And so on and so forth.
Be consistent. If you are consistent in what you do, you can easily spot things that need improvements. You don’t have to invent the wheel. Know your odds and keep doing the same thing over and over again and success will come. Casinos prove it time and time again.