This is the SINGLE most important question you will ever ask yourself as a trader. Be honest & Answer it.
"Taking a loss gracefully" is a skill that is developed over a number of years. It's not easy. And it's the most important skill in trading.
Ironically, the average trader never even bothers to ask this question. He is always after the next best strategy or trading system that will make a guaranteed profit. So why even think about how to take a loss?
Taking a loss is an art. Easier said than done.
A loss can be financially damaging & psychologically devastating. So, it's v.very important that you know how to take it when its small.
If you are playing chess with the Grandmaster, Viswanathan Anand how many games do you expect to win out of say, 10 games?
Even if you are a Grandmaster yourself, 6 out of 10 should make you very happy. Right?
Then, how can you expect to win & make a profit each and every time you trade? Trading is probably the most difficult game on earth.
Remember, "that trader" on the other side of your trade might have devoted a better part of his career & life in mastering this game for decades.
In trading, always expect to make a loss. That way it is much easier to take it when it comes.
Never let a loss eat into your capital. Never. Take it when it's really small.
Pls read the last 2 lines once again, they are the "holy-grail" of trading.
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How true. As if you have written this after knowing me. I really fail everytime to book losses when they are small and you know what i also sense that this will fall further but still i fail to book losses when they are small.
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