Home > Psychology > Using Losses to your advantage

Using Losses to your advantage

So often in this market do traders frequently see losses turn from bad to worse in the blink of an eye, just to prove themselves right. However, losses are one of the most important keys of a trader’s psychology. Generally speaking, it may seem that as soon as we put our order out and get filled the market goes in the opposite direction and we take a loss and have to re-evaluate. Every trader progresses once he/she learns that taking a small loss is not the end of the world, but a way to either gain a better position or an opportunity to re-evaluate his bias.

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Categories: Psychology
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