It is popular opinion sometimes that a trading strategy might no longer be effective if one begins to loose money while trading instead of gaining.
An important question i ask myself whenever i hear about people complaining or simply discussing a series of consecutive looses they have made while trading using a certain strategy is;
HOW MANY CONSECUTIVE LOOSES IN TRADING CAN YOU HANDLE BEFORE YOU ACCEPT THAT YOUR CURRENT TRADING STRATEGY IS BECOMING LESS EFFECTIVE?
I think two times is enough for me. Can’t continue to lose the third and fourth time like some people said they would do. Nah, once I even lose the first time, I start looking for another solution, and see to it whether there is anything I have done wrong this time around and the second time is for me to confirm that I haven’t done anything different from the way that I have been doing things right from time, and it will be a confirmation for me that I have to try something else. So when it happens the second time, consecutively, I quickly change the strategy and look for another way to go for it.
How you would consider a loss in trading?
Is this something talks about overall losses in capital or losses on each order you do make? There are specific situations on which you do consider a lost.
We do each have those tolerance in all sorts of things.Some might able to hold for longer and some are really that impatient on stopping once they had reached out their limit of patience.
Trading losses cant really be avoided but somewhat can be lessen by means of someone's experience.