Are you a wins-and-losses trader or a portfolio trader?
Let me explain:
There's two approaches to trading.
A lot of traders think that the way you measure your trading success is by lining up how many wins you have and lining up how many losses you have and counting them.
If you have more wins than losses, you're a good trader, right?
Wrong!
I mean, maybe that's true! I don't know your individual story. But that's not a healthy way to look at things.
Because if you win nine $10 trades and lose one $100 trade, then you've lost ten bucks.
So I propose a better idea:
The portfolio approach.
If you can make one dollar and keep it overall, across all your trades, that's a win.
If you close one trade and make $100, you can afford a few losing trades that lose you $15.
You get the picture.
Change your mindset and think about the big picture. I think it'll really help you. |
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