Even the best trading strategies go through losing trades. A loss in one trade does not necessarily mean the approach has failed, because markets are uncertain and no strategy guarantees positive results in every operation.
The core idea is that a trader cannot control the outcome of each trade, but can control how it is managed.
The process begins with entering according to the plan, then comes the result. If the trade is profitable, the trader continues following their strategy. If it is losing, the analysis, learning, and review phase comes before searching for a new opportunity.
Loss management is one of the key elements in this process. Defining position size, the exit level, the amount of risk, and the rules for dealing with a series of losses helps prevent a single trade from disproportionately affecting capital.
The image suggests that losses can be a natural part of trading results, even for professional traders. The important thing is not trying to eliminate every loss, but knowing how to deal with them without abandoning the strategy.
The difference between losing a trade and losing a strategy lies in the way you respond.
The market will provide new opportunities, but capital is limited. Therefore, loss management is not an attempt to avoid the market; it is a way to preserve the ability to participate in it.
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