Home > Sideline Adjustments > SIDELINE ADJUSTMENTS TIP #7: COME TO GRIPS WITH YOUR LOSSES!

SIDELINE ADJUSTMENTS TIP #7: COME TO GRIPS WITH YOUR LOSSES!

January 18th, 2012

COME TO GRIPS WITH YOUR LOSSES: Figure out precisely what you did wrong, as well as what you did right after each losing trade. Always forgive yourself for your mistakes and realize that opportunities for improvement often come disguised as misfortune or temporary defeat.

A wise individual realizes that there is absolutely no value in beating themselves up for something they have done wrong in the past. After all, you cannot change the results you get in the stock market anymore than changing what you had for breakfast the previous day. Remember to be kind to yourself and choose instead to accept the lesson of your mistakes, uncover any bad habits, improve your system, regain your emotional balance, and move on to your next opportunity.

Recognize that your path to fortune will always have some bumps along the way. The sooner you get over these bumps, the sooner you will be ready and willing to trade successfully the next time around.

Comment: The stock market teaches you valuable lessons about investing and life more through defeat and pain than victory and joy. The purpose of pain is not for you to suffer. The purpose of pain is to heal yourself and then help other to heal from the same thing.

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“Every investor should be prepared financially and psychologically for the possibility of poor short-term results.”

Benjamin Graham ~ Legendary professional investor (1896-1976)

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