The Benefit of Losing

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

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