I expect every trade I take to be a loser?
Yes, you read that right. I expect every single trade I’m taking to be a loser.
Why?
Before thinking why? Ask yourself, what you will think before taking trades?
To be a winner – Probably, most of the traders think that.
Now, let me tell you why I expect every trade to be a loser.
Because, this simple thing will keep me,
1. Confidence while trading,
2. Execute and manage my trade well,
3. Consistent in my trading approach.
Let’s look out in detail,
1. Confidence While Trading:
How trader will get confidence while trading? By seeing his/her setups works fine. What if position goes against the trader?
Trader will lose the confidence. If trader facing the loss multiple times (Lot of retail traders facing more losers than winners) in a day, their confidence level will go to zero. With a zero confidence, trader cannot able to punch the new order.
Let’s reverse the situation, I expect every trade to be a loser.
What will happen if I see my trade is loss, will it affect my confidence? NO.
Because I already expect this loser. I will not lose my confidence; this confidence helps me to punch the next order.
2. Execute and manage my trade well:
If you expect all you trades wants to be a winner (No one in the market can win every time) What will you do when trade goes against you,
You will widen your stop loss,
You will pray to your favorite god.
Because of your expectation of winning in every trade, you will end up with losing more.
But I expect my trade to a loser. So, I will quickly exit at predefined stop loss or at my entry price(Exit at cost) and I will not lose more.
3. Consistent in my trading approach:
Consistency is the one of the key area where all the traders should look it out.
What most retail traders are doing? They watch Youtube trading videos or read some setups from book and start applying in their trading. And they will trade for few days, after facing few losses again they will start searching for new setups (there is hundreds and thousands trading setups available in internet, A trader lifetime will not enough to trade all these setups).
They will find another setup, again they face lose. Again, they will look for another setup. It just goes on.
But I expect every trade I take to be a loser, None of my losing trade will compel me look for other trading approach. Because I losers are expected one. So, I don’t look for another trading approach rather I will try to fine tune my existing setups.
This makes me trade with the same approach for a longer time with consistency.
So , I always expect every trade I take to be a loser, unless price proves I’m wrong - Which means my trade is Winner.( Glücklich 😊)
It is all in our mindset. Think in this way & see the difference.
So, what do you expect in your trade? A Winner or Loser?