Why Trading Losses are Good?

This sounds crazy! How can trading losses be good?

The answer is simple - it means that our money management/risk system is working as it should be. If you have a strict and proven money management system (like we do) it means that we have to accept a few small losses in our long term journey. This is not about ego and trying to get every trade right, it's about long term profitability. By cutting losses early, we can quickly move on to the next trade. If we don't, we will be tying up capital and potentially let that small loss turn into a very large loss. Trading this way is simply gambling. Trading with a plan and executing it without emotions or bias is the key to long term success.

So, next time you see a loss, or even a few small losses in a row, just know that the system is working hard for you just as it should be. We are only worried about medium to long term results - not daily.

Posted 20 September 2023