How to correctly deal with losses in trading?

When doing trading, the losses we encounter can be roughly divided into two types: one is a correct loss, and the other is a wrong loss. The so-called correct loss is that after sufficient analysis, the trading operation is executed according to the trading strategy, but the result of loss still occurs, so it may be called a correct loss. We did not make any mistakes in the process of executing the transaction, but we were temporarily unlucky and encountered a small probability event such as loss. Such losses are unavoidable.

On the contrary, if the trading operation is forcibly executed without sufficient analysis, or the negative factors in the market are ignored, or the market is impulsively entered under the influence of mentality, these situations result in losses, which we call wrong losses. Wrong losses can be avoided and we should avoid them.

After encountering losses in trading, we first need to confirm whether it is a correct loss or a wrong loss. If it belongs to the former, then we don’t need to be too picky when summarizing the transaction and force a rational explanation for the loss. All we have to do is to accept our bad luck, laugh at the current loss, and continue to devote ourselves to the next trading decision; on the contrary, if we find that the loss belongs to the latter, then we need to analyze and summarize the losing trades in a more specific way, find out what mistakes were made in the trades in time, mark them in the trading records, and keep them in mind to avoid making the same mistakes next time.

In trading, failure is the mother of success. Loss-making trades are very good learning materials for traders. A creature like a person grows up in the process of making mistakes. But one thing needs to be noted. Trading is an industry that deals with probability. Even if the trading operation is 100% correct, it is possible to get a loss result under the influence of probability. Loss-making trades are not equivalent to wrong trades. And this is also the difficulty of learning trading. #币安合约锦标赛 #美联储连续第七次维持基准利率不变