A short YouTube clip (Kardec Trader) explaining two kinds of trading losses: (1) expected, controlled losses accepted as the ‘cost of doing business’ when risk limits are respected, and (2) larger, uncontrolled losses caused by lack of self-control, which provoke anger. The speaker emphasizes accepting planned risk and distinguishing it from preventable emotional over-losses.
There's two types of losses trading. One loss is that I'm supposed to lose 10k a day or my stop should be a 10k, but I end up losing 25k because I have no self control over myself. That loss I get mad at. Now if I'm expected to lose 10k, 5k if I'm wrong and I put out the risk, okay, well that's the cost of me doing business. That's the cost of trading. As much as we don't want to lose money, it's going to happen because we risk money to make money, right? So okay, I risk money. I didn't make it this time. It's okay.
