If I look back, I will probably come up with a list of all the things that I experienced, and all of these things have impacted in some way or the other. But the one big take away, it’s that one thing, which stayed on my mind is my acceptance that losses will happen. You just can’t stop losses.
Initially, I tried and put all my effort to avoid losses, and I still lost. I kept on losing for almost two years, and then one day I thought, I can’t stop it. The only way left for me I suppose is to win more than I lose. Though, I read numerous times about the inevitability of losses in the stock market, but still, I never understood it.
Now I am comfortable with my losses. I don’t rattle by a loss in a trade. In fact, I don’t rattle even after string of losses.
I know the losses are here to stay. I just can’t stop it. I accept loses without any condition. The only thing I do now is to ensure I don’t lose too much.
And also, I don’t lose an amount which could hurt me. Even before I enter a trade I am pretty sure on how much I will stand to lose by the end of a trade if at all the trade goes against me. This for me has to be the key. Learning it is not as easy as it seems to be.
The profit one eventually makes in the stock market depends upon one’s ability to understand the process of losses that takes place. Learning to accept losses involves emotional and psychological tuning. One has to go through the grind of losing enough in order to understand the process of a loss.
And when you understand this process, you start your journey to profit from stock market. I also learned a very crucial aspect about trading – not to get addicted to trading.
When I started I would jump to any trading opportunity, the slightest hint for me was enough to initiate a trade on any stock. The losses piled up, and then after a series of losses, I decided to lower the number of trades daily. It took some time to implement my decision. However, that one decision was the start towards my path to reduce my losses.
I guess that’s something I consider very valuable. It changed my whole approach towards trading.