In this instructional video, The Art of Crypto explains that trading losses fall into two distinct categories. The first, self‑error loss, occurs when a trader deviates from their own system—examples include following others, overtrading, revenge trading, and other self‑inflicted mistakes. These losses are fully the trader’s responsibility and should be corrected immediately. The second, system loss, happens when a trader follows their system perfectly yet still incurs a loss because trading is inherently probabilistic. The creator likens this to being dealt pocket aces in poker: while the odds are best, a win is not guaranteed. The key takeaway is that traders must first identify which type of loss they are experiencing before attempting any fixes, adopting the right mindset for each scenario.
