How to love losing your trades or losing trades
Today, I thought we could speak about something that sounds a bit counter intuitive actually. How to love losing your trades or losing trades, I should say, to build financial freedom.
Because after a few years now working with traders and being in trading for a while myself, we tend to repel losing trades. (Watch the Video 7 mins)
How to love losing your trades or losing trades, I should say, to build financial freedom.
We seem to hate losing trades, and obviously love winning trades.
So we become very polarised in our trading, and we spend our time fearing losing trades as well. And you know that old saying, What you fear most, you will draw into your life; so you’ll attract into your life what you fear most because, it stands to reason, that’s what you’re focusing on.
So if you’re focusing on losing trades, you’re going to attract losing trades into your life, alright.
But when you shift that perception, shift that way of looking at it, and you embrace losing trades to a point where you understand that losing trades and winning trades are part of the whole, it’s not possible to trade without losing trades. That’s a given.
In Tribe of Traders we have a philosophy that we trade modelling the GENIUS TRADING MODEL.
And that is trade as a business, money manager first, and you master one strategy at a time.
So with trading as a business, if you look at it like this. You are trading as a business and your winning trades are your sales as a business. Your losing trades are your cost of sales. So the difference between your cost of sales and your sales, should give you your gross profit.
And then you got all your expenses, like if you’ve got a VPS and your broadband or subscriptions etc.
Then you get your net profit, okay?
Now, obviously that is ideally, like any business, your sales are greater than your costs, so ideally your winning trades are greater than your losing trades.
But lose the fear attached to losing trades.
Stop attracting them into your trading and start understanding and embracing that losing trades are part of the whole, are part of trading as a business, the product cost of doing business.
There is no business on earth that doesn’t have cost of sales. Losing trades in trading is part of that cost of sales.
Now take it a step further and understand that when you take that a step further and you start focusing on getting to a point where you have an average success rate, focus on that.
Focus your energy, your mind, your heart on getting to a point where you have an average success rate.
Stop focusing on losing trades, or being fearful of losing trades, or focusing on losing trades, and focus on getting an average success rate.
Because what that will do for you is that when you get the losing trades, you will enjoy them as much as the winning trades.
You’ll understand they are the part of the whole and by trying to run from losing trades and only towards winning trades, you’re trying to divide or separate the inseparable.
Losing trades, winning trades are part of the whole, they’re part of the cost of doing business, they’re part of trading, learn to love it.
Focus on getting an average success rate.
My average success rate for trading our two strategies is 74%.
So obviously I’m going to lose 26% of my trades.
So when I lose the trades, I know that they’re part of the whole.
They’re part of trading, they’re part of the cost of doing business, they’re part of the business of trading.
So I don’t get stressed.
I embrace the losing trades because they’re part of my 74% success rate. T
hat makes sense.
So when you shift your focus from being fearful around losing trades to understanding that losing trades are part of the process, you shift away from the fear.
When you’re in fear, you’re very much in a low vibrational state.
You are in a stress state.
And that’s a recipe for disaster for trading.
There is no place for stress in trading. None.
So my suggestion is to urge you to shift your focus away from fear of losing towards focusing on establishing an average success rate to a point where you embrace the losing trades.
Because you know it’s part of the whole and they’re as valuable to you as your winning trades.
So get that right, focus on that, and you’re a lot closer to the financial freedom that you’re looking for in trading.
Add this to eliminating mistakes that you make in your trading.
BOOM……. You will be unstoppable!
I’ve seen so many times traders would have had successful months had they just eliminated the mistakes.
And you probably will eliminate, you most likely will eliminate the mistakes when you shift your focus away from fear of loss to focusing on getting an average success rate.
So it all ties together and I know you can do it, and it’s possible. It’s very possible.
I’ve seen it too often. I’ve seen people make that shift and become profitable.
Double their accounts in a year.
I’ve seen it over and over, and I know you can too.
