A short talk advising traders that accepting losses and understanding their causes is essential to long-term success. Emphasizes that most trades will lose, proper risk management allows winning trades to compound, and emotional control when losing is critical.
To be a successful trader, you need to know how to lose. But the idea is to understand why are you losing, and then when you do lose, being okay with it. So let's just take a quick step back, because I know some people like, what do you mean you have to be okay on losing? It's because most of trading, you will be wrong. Most of trading, you will lose. The little trading you do win in is the trading that will compound and make the most money. If you have the proper risk management. I see traders, they'll have good months, good weeks, but the moment it's time for them to lose or they do lose, they go crazy. They'll go erratic. They do not know how to control themselves. They do not know how to manage the loss.
