The biggest difference between Pro and Amateur Traders is how they view losses. Amateurs see losses as personal failures. Pros see losses as Operating Expenses.
๐ธ Your Trading Business Structure:
Account balance is your goods. No goods, shop closed. Protecting inventory is Priority number 1.
Losses these are electricity bills, rent, water. You can not run a business without costs. As long as Revenue (Winning trades) > Expenses (Losing trades), your business is profitable.
Plan: Do you restock (Enter trades) randomly? Do you sell (Take profit) when prices are good?
๐ธ Shifting Perspective:
When you hit Stop Loss, do not be sad. Tell yourself This is the fee I pay to find the next big winning opportunity
When you take profit, do not be arrogant. Tell yourself Revenue is in, bank it, prepare for the next restocking.
๐น Do not attach emotions to single trades. Look at the Monthly P&L Statement. A businessman does not cry when paying the electric bill, and a Trader should not cry when hitting Stop Loss.
Are you running your trading like a serious CEO or a desperate gambler?
News is for reference, not investment advice. Please read carefully before making a decision.
