Losses in trading are nothing but Business expenses - page 5.

Questat

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Quote from: firmino10 on September 20, 2021, 04:33:46 PM

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.

It is certainly a learning experience but some didn't understand this. If we fail today, might be the same by tomorrow but can't be forever if we have to correct our mistakes. Even experts had such losses but wondering why they are still on trading, that is because they don't give up instead they stand strong and learn all those mistakes as this could help them to make it better and good results.
And those who hardly understand the situation will simply make their minds doubted and sooner or later, they will give up. There are lots of them and of course, not all have to become traders, that is the fact.

sherenikaw

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I admit that you're mentally strong and that is what is needed in trading. as long as I trade I realize that not every time I get a profit, it could be that I get a failure so that is a natural thing. It's true what it says that failure in trading can be considered a business expense. So if you get the failure, don't get too lost in sadness, get up and start again with a new spirit. make failure a lesson in the future so that you can trade better and make a profit.

checkmatesir

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Most probably the newbies in trading thinks that trading is always just like gambling and we can get only profit and never ever want to lose, but it is definitely a wrong thinking of all the traders that they have the same thoughts, because trading is just like business and people can also have to suffer sometimes from the loss with having profit as much.

jostorres

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Quote from: firmino10 on September 20, 2021, 04:33:46 PM

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.

If you are smart enough then you could save your business expenses because there are plenty of opportunities available for every beginner in trading to develop their own strategy out of zero expenses. So, it is up to you that you will be developing your technical strategies and all other trading skills by spending a lot of money or by only spending time and effort.

Just by making use of demo accounts, anyone could develop technical trading strategies out of zero expenses and then when you are getting into real market, your business expenses will not be that much costlier.

ZaraCB

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In trading, each person's strategy is different. You are evaluating losses in trading as business expenses. But there are many who can't accept it and the way trading will always be just profit. Such people are very sorry if there is a loss in trading and say I will never trade again. Trading is not suitable for such kinds of people.

so98nn

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Then this has to be most costly business and expenses are off the chart if not done with careful techniques. I still believe that trading is something which needs extensive knowledge of reading the charts, forecasting the project/companies fate based on technical and fundamental analysis. Considering it business is no bad strategy I am sure. But considering your loss as your expenses is bad idea. This way we can not understand the trading patterns, rather we would be following the rage of gaining our “expenses” back and not reaching the break even point. I think learning to trade is simple formula.

chanler

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for me trading is an adrenaline-pumping thing, where the profit or loss we will get depends on how we manage our assets properly. if we see many people who experience losses in trading then it can be an illustration of the trading risk itself, not every day we get a profit, and vice versa not every day we get a failure. we just need to upgrade our knowledge and skills in trading so that it will be better in the future.

Dewi Aries

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Quote from: firmino10 on September 20, 2021, 04:33:46 PM

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.

Anything in people's mind, as long they never give up i will say it is good. Because a lot of people sometimes think losses in trading is something that they must revenge. I said this because i see some of my friend, every he lose, he will mad and then keep doing trading activity to regain his losses. That can cause people do something reckless because trade need to be calm and not in angry feeling.

retreat

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Quote from: Scripture on September 20, 2021, 04:48:15 PM

Trading is like a business, you put up a capital and you work on it until you make profit so if you failed to prepare before doing any trades, don’t expect to succeed. Trading is not about making profit, sometimes its about having the right knowledge knowing when to buy and sell, and in this market losing is very normal just know how much risk you can take.

Your mind very mature and are very aware of what you are doing. trading is gambling is wrong, the truth is trading is like a business, loss or profit is your decision. in addition to strong analysis, you also have to have a tough mentality to be able to continue to survive in trading otherwise you will only lose.

martina14

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As a trader in the cryptocurrency business, I treated this as my own personal business of course. Because I buy and sell the coins that I choose.
So, it is very important to me that losses is just a normal things here in crypto space anyway. Moreover, always remember that the movement in the actual trade are only two always in which is the up and down the price only nothing else. You will only get loss if you sell the coins in the lowest price when you bought it.

TheUltraElite

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Quote from: lovemycar on September 23, 2021, 12:56:05 AM

In this game, either lose or win.

I would again like to point out the fallacy in this statement. In spot trading, you are not "losing" money every time you end up doing a wrongly placed trade. What you would get is possibly a shitcoin in return. But you have not lost your money till you sell that shitcoin and realize your unrealized P&L. While in margin trading you are defenitely losing money because it is a type of gambling.

Quote

But for novices, the necessary tuition is normal, so keep a good attitude, but I will also say, Few people can control greed

I think it is better if every trader starts by dummy trading on paper than jumping into trading in real. By doing dummy trading you can actually know if you can make any money trading or if trading is not your thing - which is often a case. Not everyone can have the nerves of trading and therefore potential losses can be prevented.

It is good for practice too, but few have the patience to do that. Majority of the newbies are going to FOMO only.

Victorycoin

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Quote from: JooBra on September 21, 2021, 03:50:50 AM

Quote from: Victorycoin on September 21, 2021, 02:19:56 AM

Trading will usually depend on the mindset of the individual it is not right to take too much pressure too much stress will cause damage and worsen from both mental and physical side therefore we have to understand the pace of the market technical analysis is very important for trading. Technology will make it easier to trade in the market by past analysis learn better when you're at a loss then move on.

The golden rule is play with money you are okey to lose. That lowers the stress lvl and will be able to think rational in the trades. Me personally play with 200$ on 10x margin and with that I'm fine if i lose it.

Reasonable because not always the same if you don't know the rules and techniques of trading well then you are more likely to lose here. Everything is improving with technology markets are being created with new rules losing will depend on your own if not updated with technology the risk is higher in margin trading.

lovemycar

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In this game, either lose or win. In fact, everyone accepts not to make money, but there is no way to accept loss. But for novices, the necessary tuition is normal, so keep a good attitude, but I will also say, Few people can control greed

Mpamaegbu

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That's correct with the mindset OP has developed, especially tagging their loss as "business expenses". Truth remains that there's no profitable trader who remains profitable all through. There are days they take losses too. What matters is not allowing the losses cut deep through the gains made. Trading isn't just trading for its sake. It's a profession and must be handled in such manner.

One thing I have come to realize about trading is the emotional attachment traders have to trades, whether gaining or losing. They cut it short when in gains and leave it to run when in loss. That's a killer. My thought would be – Why not let it run to either a TP or SL once the trade triggers.

Rehan Zakir

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You are saying right. Losses in trading are nothing if we compare it with the other businesses. In other businesses, we need land, investment, electricity, humans, resources etc. to run a business. And the most important thing is the marketing. Without marketing we cannot introduce our product to other end users. But in trading we just need a laptop with a internet connection. And we can start our business. So, don't worry about losses in trading. Because profit and loss is a part of business.

michellee

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Somehow, I agree with @OP because trading will always have two results, win and loss. If you have a good strategy that can work with the current market, you will profit or vice versa. If we can think like that, we do not feel too sad when we get lost because we believe that we can recover the losses and profit in the next trade. We can only try hard to prevent the loss by analyzing and using it on the trade itself. The more we practice to make analysis, the more chances we will make a profit.

Momoamzad

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Investing in cryptocurrency is like a busssiness also. And every business have to bear loose .so I think loosing in investment in crypto should consider as business loss,.and sometimes loss in business is good for future investment as you can utilize that mistake in further use of same methodology . But without loose business can not be perfect I think .

Issa56

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That's sure in cryptocurrency trading you there should definitely be lost which is normal, whenever their is lost you shouldn't give up the only thing I believe you should do I take your note pad and analyze the trade and find out what causes the lost in the trade so that atleast when next you are entering another trade you should always avoid that same mistake which happens in the first trade and don't always go For revenge trade it is very bad.

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Quote from: firmino10 on September 20, 2021, 04:33:46 PM

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.

Having that kind of mindset would likely lessen your chances in getting depressed after a loss on that trade. It's like for every loss that you have in that trade, you're treating it like a business expense or an "investment" to learn from that mistake.

And yes there is no strategy that works 100% coming from those "trading gurus" out there. Coz' the reality is that you can't predict and control the market. The best lesson that we have these days is that only invest an amount that we could afford to lose or treating as "dead money" and learn how to manage risks both time and money.

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Quote from: firmino10 on September 20, 2021, 04:33:46 PM

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.

So, if you consider losses as business expenses, then you must know exactly how much your business expenses are, because if you consider all losses as business expenses, you can very easily forget about the loss without analyzing what made it a loss.
Actually this is quite an interesting thought but it can be a trap if you take a loss too lightly, and you finally realize that your business expenses are greater than the profits you get, then it is no longer a good business.

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