Introduction
Yes, you heard it right. But how can someone benefit from losing money? To answer your question, if you ask all the top traders how they learned trading, you’ll get different answers. Some will say they learned from a mentor, others from books, online courses, or webinars. But all top traders have a common answer: “I learned by losing money or making mistakes”
Learning by Losing
Yes, losing money is depressing and breaks you, but it also makes you wiser each time. I’m not saying that go and start losing money left and right. My point is, you don’t need to feel low whenever a trade doesn’t play out. It takes months to conquer the emotions while trading and become unbothered by the losses. To begin with, try keeping your amounts minimal—low enough that it won’t affect your mental health when you lose a trade. With time, you will gain more confidence when you setup starts working.
Analyzing Losses
Each time you lose a trade, it gives you more data than probably any article could. You have all the information on why the trade went south. Gather this information and analyze whether your chart was imperfect, your plan was flawed, or if you messed up the execution.
Trade Journal
Keep a journal and write detailed notes about each trade. Document why you lost the trade. Were you impatient, jumping in without confirmation because an influencer on Twitter said it would go up? Or were you overconfident in your setup and risked more than you could afford to lose?
Lion Strategy
Let me tell you about the strategy Lion uses when hunting. First, the lion scans whole herd and find one weakest target—something it has the confidence to pull it off. Then the lion plans its strategy, hiding and waiting patiently while calculating the distance and timing of the jump (like waiting for a retest and confirmation). Remember the most important part, ‘waiting patiently’. The last step is execution. When it’s time, the lion does it with total perfection and great timing. It rarely grabs anything other than the animal’s neck. In each step, Lion has sheer discipline.
Crypto and PNL Screenshots
So do you think if the lion knew about crypto, it would be a good trader? Nah, I don’t think so. Why? Because the lion would get depressed after seeing the big PNL screenshots from those larps who use higher leverage like 40-50x and sometime more than 100x just because their PNL percentage can look heavy but put very little amount in the trade. They aren’t trading for profit, they’re trying to trap others with their flashy PNL percentages. You’ll rarely see them post their negative PNL. They never show any negative PNL.
Acceptance of Losses
Any good trader will never hesitate to accept losses. On the contrary, they often talk more about their losses to educate others so others won’t repeat the same mistakes.
