Are you trading to recover your losses?

If you’re in “make money back” mode as a trader, you will have a very difficult time being profitable …

Here’s why

Majority of traders that start out trading, usually lose money in the early stages which is normal

Now what happens during this period is traders:

- start with too much money

- have no foundation

- no risk parameters

- no edge

And basically have a high chance of losing money…

Over time, some traders start developing a solid foundation alongside becoming a better trader

However, their trading PnL is still red…

Why’s that?

That’s primarily because they’re connected to the money they lost during the early stages…

That dollar value is making it harder for them to make high quality executions because they’re now trading to “make back the money they lost” instead of trading what’s in front of them and taking what the current trade gives them …

So how do you combat this?

1. When you start out, don’t start with a lot. Start with enough to just practice and get an understanding of the markets

2. Have tight risk parameters to protect downside hits

3. Once you build consistency then reset your account…

What do I mean by reset your account ?

That could mean you can open a separate account with a fresh start so you don’t see the loss

And after that also take the loss you had, as a “learning” loss to overcome it…

If you’re unable to overcome it and work towards this then you’re just standing in the way of your own trading success and will continue to do so…

Keep Learning