In this concise monologue, The Art of Crypto explains that trading losses can be categorized into two distinct types. The first type consists of "normal" losses that occur even when a trader follows a well‑defined plan and adheres to all rules; these are inevitable due to the probabilistic nature of any trading system (e.g., a 50% win‑rate strategy will lose half its trades) and do not require any corrective action. The second type stems from human error—chasing price, entering or exiting trades early, or otherwise breaking the trader’s own rules. These losses are avoidable and should be fixed. The speaker emphasizes that successful traders are not those who eliminate all losses, but those who can correctly identify which losses are acceptable and which need improvement, making this distinction the most critical skill for long‑term success.
