One of the most important tips for all traders is something that takes most people by surprise in this business and that is accepting losses. This is one of the easiest things to say but probably one of the hardest attributes for any trader to stick to. The main reason for this is that our minds are not developed for taking losses. In fact, most research on this subject has shown that most traders that are shown a successful strategy that is proven to work will do fine with until they get a few losses and then they more often than not will move onto trying another strategy.
This is what I call “the next strategy cycle” and causes traders to be go around in circles of trying the next thing all the time until eventually they just give up..
Below is some sayings I made up a long time ago to do with Trading which had a great impact on me and I use still to this day, not so much just because it is true but because also it links truth to the ability of how much money can be made in this business.
Here is my Saying:
The most important aspect in Forex is to accept is our losses, we must on all accounts embrace our losses to the same degree as we too embrace our profitable trades. By not accepting losses we guarantee that we will never make money in this business, however by accepting our losses in this business we guarantee our success..
Or in Another way:
By accepting loss in Forex one can tap into unlimited amounts of money. Loss is the key to financial freedom in this business.
Both these sayings above are so true, in order to be successful all one needs is a good proven strategy that is proven to work. That is number 1, number 2 is using good risk reward, number 3 is money management and lastly to make it all work one needs to accept that every now and then some of your trades will not work out.
Do you Accept Losses in Forex?