Topic: Losses in trading are nothing but Business expenses (Read 696 times)
Newbie are mostly those who try to avoid not losing at all in Trading. And whenever some of them loses in trade, they feel like giving up, while some other feel depressed. I remember when I got into Trading new. I usually feels like stopping daily trading when I lost. But ever since I came to realised that losing is part of Trading. I now learn from my mistakes and try to avoid losing much. Although, no strategy is 100% when it comes to trading. But as a trader, you have to build a strategy that will probably work for you.
It's very unfortunate to hear some stories that have failed in trading and lost due to greed, I mean they know that it's a gamble to take but they still did it because of the tempting profits if ever if it succeed but sadly it didn't.
Trading will be a gambling if you allow your emotions to take decisions. Moreover, there are lots of factors in trading to push you into losses and not just your emotions; I mean failure of your technical analysis must be your first-ever reason which will lead you into losses. Still, not following the TA by not booking profits due to greedy and then facing losses is also a common event in trading and this kind of events will not let anyone to learn because these traders never get control over their emotions hence their losses keep increasing.due to unpredictability of the market then it is unavoidable for you to experience such condition this is why you should really be doing your best on lessening the risks as much as you can.
Skip a signal which is not satisfying all your conditions could be one simple solution here to minimize your number of losing trades which means you must need stronger TA along with greater experiences of using those TA. 
Yes losing in trading is business expenses but someone who has put all the money in trading and unfortunately the price goes down then he will surely drop all of his capital. So it can be make him disappoint and due to this reason perhapes he stop this activity. Therefore for some people it is not just business expenses but it is hope of gaining profit as there is no other source to gain money.
Actually, even the most skillful and experienced trader isn't exempted about it, up until now they're still lose if they can't predict it very well and with just a small margin of errors may lead to losses not just profits but capitals as well. Losing is always a part of the expenses and there's nothing we can do about it but the important thing is you have learned and gained another experience.
It's very unfortunate to hear some stories that have failed in trading and lost due to greed, I mean they know that it's a gamble to take but they still did it because of the tempting profits if ever if it succeed but sadly it didn't. It's never a good idea to put all your capital after all, because chances are it'll lead to disappointments.
handle up risks which is something cant really be handled out by anybody.You should be thinking about those losses are part of the investment and due to unpredictability of the market then it is
unavoidable for you to experience such condition this is why you should really be doing your best on lessening the risks as much as you can.
Yes losing in trading is business expenses but someone who has put all the money in trading and unfortunately the price goes down then he will surely drop all of his capital. So it can be make him disappoint and due to this reason perhapes he stop this activity. Therefore for some people it is not just business expenses but it is hope of gaining profit as there is no other source to gain money.
Actually, even the most skillful and experienced trader isn't exempted about it, up until now they're still lose if they can't predict it very well and with just a small margin of errors may lead to losses not just profits but capitals as well. Losing is always a part of the expenses and there's nothing we can do about it but the important thing is you have learned and gained another experience.
It's very unfortunate to hear some stories that have failed in trading and lost due to greed, I mean they know that it's a gamble to take but they still did it because of the tempting profits if ever if it succeed but sadly it didn't. It's never a good idea to put all your capital after all, because chances are it'll lead to disappointments.
New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
Don't try to bring it in a that looks like experts traders like loses which will sound like loses is a prerequisite.ecerybidy always try to avoid loses but sometimes it's just come like that. Loses is paramount and we'll should be prepared for it rather than trying hard to avoid it.When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
The newbies mist time always make good earnings in their trade at first but later, they'll realise the important of getting a good skill than just using there superficial knowledge to analyze and get what they want from the market.
They simply don't realize it too early but more often it happens late. Even that, we can't still escape the possibility to get lost, it is generally a part of it. Losing is a life in trading especially for those who don't want to learn more and correct their mistakes.
New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
Great analogy, that's the easiest way to explain that. However, trading is not everyone's business, I mean, not everyone who tried trading gain something positive from it. Other people who lose a lot of money in trading gained nothing but discouragement and frustration. Those who lose a lot of money in trading and never quit are the winners, because they are doing everything to learn something from it with their positive mind that they can do it.
New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
Don't try to bring it in a that looks like experts traders like loses which will sound like loses is a prerequisite.ecerybidy always try to avoid loses but sometimes it's just come like that. Loses is paramount and we'll should be prepared for it rather than trying hard to avoid it.When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
The newbies mist time always make good earnings in their trade at first but later, they'll realise the important of getting a good skill than just using there superficial knowledge to analyze and get what they want from the market.
Absolutely you are right, because when a new trader comes to trading if he didn't get a loss how can he know about what are the affects of loss in trading and how did he get experience without getting loss in trading? That is the main point most of the trader just lose their money and quit trading and then regret after that, most of them are newbie.
There's no trader that will never have a loss. Everyone gets it as they trade and no matter how good and pro they are on it, losses are inevitable even with your best technical analysis. As said, it's also a business and in business, losses are also happening but you just have to keep going and recover from that for you to learn the lessons from that loss you've made. avoid such thing because you would just stress out yourself which would mainly affect your trading behavior if you do always mind into those losing amounts but doesnt mean that you would
really be just careless because what you are doing here is that you are trying to making the risk even way more lower or lesser as you do gain up experience.
New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
What we should consider as business expense is not like suddenly it is not expense or not a loss neither. When we are doing something we should be careful anyways, if you run a business and then suddenly end up buying something a lot more than you need, like 100 boxes of it instead of 7 boxes when it would have been enough, then it is not a smart expense.When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
So, if you are going to go out and make some business expenses then you need to know if you are making a smart one or a bad one. Trading is the same, if you losing money trading on something that makes sense then you ended up losing because unexpected happened then it is understandable, but if you are losing money because of something silly that you just throw money into then it is not really smart.
Trading is a business and you should see it that way.
You have to really treat with like real life business because whatever that happens in there is related to the physical kind of business. The risk too should be properly sized against the size of the capital used in trading. You can't treat online trading just anyhow, in fact it requires every care you can give more than the physical trade, if you make a mistake to trigger a trade then you either expect lose or prodit so we need to be sure of what we want to trade before we hit the button with appropriate stop loss.
Absolutely you are right, because when a new trader comes to trading if he didn't get a loss how can he know about what are the affects of loss in trading and how did he get experience without getting loss in trading? That is the main point most of the trader just lose their money and quit trading and then regret after that, most of them are newbie.
New traders always try to eliminate losses and see losses as something bad. My breakthrough in trading came when I started seeing losses as expenses (business expenses). Trading is a business and you should see it that way.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
When I follow my strategy and I lose, I see it a the price I have to pay to get it right, because there is no 100% strategy and since I don't know which trade would be a winner or loser, I detach myself from every trade and execute my strategy flawlessly regardly of the outcome.
Here you are of course right, but in business, as elsewhere, someone loses and someone wins.
You can find a successful businessman who runs his business smartly and makes good money, but not all businessmen are born traders or entrepreneurs. Not every smart businessman will be able to trade cryptocurrency at a high level.
Those are both in the factor of losing and at risk because in business you will get it depends on the product you are willing to sell, if you want some unique it might a high risk-reward there are a chance people will not support or they will. In business, there's no cutting the loss once you started because you already bought the things you need. In trading, the same thing but you have the opportunity to stop loss and take profit but it depends what market you will go with if this is for stock, crypto and etc. The more volatile of course the more risk.
I agree with you because if you start a business and you succeed at the first time definitely you don't know where you are heading to. Losses in a business or trading is not a curse but it gives you experience on how to stand challenges. Before you start a business you should know that there is loss and expenses, do not rush into the business make sure you know the business very well and the most essential thing don't borrow money to start a business is too risky.
Running cannot be totally avoided, you'll only end up reducing the rate at which you run at loses. And yeah it's true that for every lose, there's an added knowledge but not everyone make use of the knowledge their loses add to them .
And it's really difficult to get used to running at lose
And it's really difficult to get used to running at lose
never hurrying up yourself on learning into something because one day it would surely pays off but of course depending on the skills and things you are trying to enhance and engaged on.
This is the reason experienced traders are committing less number of mistakes and they are able to cover their losses by their next trade hence literally they are not paying any fees for their learning process because they have already mastered the required things for profitable trading.Yeah, there will be no point of rushing in trading in the beginning stage because when we are not having enough experience in trading then losing trades will be higher and when you are making more losses then there will be no point of making more trades. Slow and steady will help learning while trading and then we can easily make profits still even we become experienced, we should not trade more by rushing into; that will help for sure.
losing in trading is business expenses but someone who has put all the money in trading and unfortunately the price goes down then he will surely drop all of his capital. So it can be make him disappoint and due to this reason perhapes he stop this activity.
The first mistake I am able to figure out in your statement is, any trader should not invest all their money; they should keep some capital for emergency purposes like if prices goes down then they should try to average. So, if you are not ready to pay for your learning process then you will commit such kind of mistakes.Second mistake must be having no plan if price goes down: either you need to exit at stop-loss or you can go for averaging when you are trading bitcoin kind of fundamentally strong coins.
losing in trading is business expenses but someone who has put all the money in trading and unfortunately the price goes down then he will surely drop all of his capital. So it can be make him disappoint and due to this reason perhapes he stop this activity.
The first mistake I am able to figure out in your statement is, any trader should not invest all their money; they should keep some capital for emergency purposes like if prices goes down then they should try to average. So, if you are not ready to pay for your learning process then you will commit such kind of mistakes.Second mistake must be having no plan if price goes down: either you need to exit at stop-loss or you can go for averaging when you are trading bitcoin kind of fundamentally strong coins.
Yes losing in trading is business expenses but someone who has put all the money in trading and unfortunately the price goes down then he will surely drop all of his capital. So it can be make him disappoint and due to this reason perhapes he stop this activity. Therefore for some people it is not just business expenses but it is hope of gaining profit as there is no other source to gain money.
These are not business expenses, but training expenses. This is more realistic, because this is what the trader spends money that he did not earn.
I have a friend like this and he actually did earned some money from it as well. It wasn't the same, he literally did studied and that is why there is a big difference, but the idea is the same. He created a project, but he wasn't a developer and he didn't know how to create a project, so he spend nearly 2k dollars for both studying material and courses but mainly also for things to test out as well, he created maybe few dozen tokens without anyone knowing just to see how it works, some on testnet, some on mainnet, even paid people to test his test as well so all in all he spend 2 grand on becoming "no idea how to create a project" to "I have created a good project" and that's a good training expense. Then he made some profit from that project but not too much, now he works as a developer for another project and earns a great salary and also a ton of tokens on top of it.Jump to: