This short talk explains frameworks for accepting and processing trading losses. The speaker frames losses as an expected part of trading and treats them as business expenses necessary to access future profitable opportunities, emphasizing a mental inscription of this perspective.
So because we understood that losing is a part of the game, the question is how do we become good at losing? Now, there's few frameworks that I have that allow me to process this. Number one, I understand that losing is a part of the game. I have engraved that in my head. So as a business, we will have profits, we will have losses. When my good losses do come in, that's me essentially having business expenses. That's me having expenses or elements that I have to pay for to be able to take the opportunities where I do make money. That's something I follow. That's something I've engraved. Mentally. I'm like, you know what? I risked a thousand dollars. I had to risk this thousand dollars to be able to capitalize on the opportunity that's present. Now maybe I didn't capitalize it on this time, but maybe the next time I'll be able to capitalize on it.
