When it comes to making wise decisions, traders have a huge disadvantage: they don’t know how to separate their decisions from themselves.

In the same way that you cannot walk into a kitchen without cooking experience and play the “chef” role, you have to “grow” as a stock trader before you can become an extremely profitable stock trader.

Listen closely… any idiot can setup a Scottrade account and start trading stocks… that’s easy. Just go on Google and type “lost money in the stock market“… see how many results you see.

And now it’s time to let you in on a huge secret…

If you are going to be a winning trader you will have to be told to like taking a loss. Basically, what that means is it does not trouble you to have a losing trade. Don’t mis-understand me, you are not going to be happy to own a losing trade, but you ought to be content to be out of the market when the trade no longer represents a worthwhile prospect.

Most people who learn this do it the hard way. They finish up losing all their money before they understand how necessary it is to love taking a loss. Rather than ignoring the fact that they need a losing trade (like most people do), profitable traders confront the likelihood of being wrong, and thus, when the time comes to take a loss, they are doing it without wavering.

I assume the explanation that so many people have trouble exiting out of their losing trades is because they think the losing trade is a reflection of themself. Nothing could be further from the truth. Your losing trades do not diminish you as a person. You’re not your losing trades. You are not your winning trades either. They are merely by-products of the business that you are in.

Losing trades are part of trading. The most profitable traders on the planet have losing trades every and each day. They do not think that the losing trade is part of them. They notice it’s simply half of trading, and the earlier they dispose of the losing trade, the faster they can rummage around for the next opportunity to find a winning trade. This is often easier said than done, nevertheless, it’s still the truth of how to make money trading.

One thing you’ll need to be told is why it’s so necessary to confront the chance of a losing trade. If you don’t, you may generate fear and finish up with the terrible situation you’re making an attempt to avoid. When you can learn to understand this idea, only then can you stop your losing trades from turning into unmanageable trades and, quite probably, from cleaning out your whole account.

You should kill your losing trades at once upon observation they exist. When losses are predefined and executed without wavering, there’s nothing to consider, weigh, or decide and thus nothing to tempt yourself with. There will be no risk of allowing yourself the likelihood of final disaster. If you find yourself considering, weighing, or judging, then you’re either not predefining what a loss is or you are not executing them immediately upon perception, in that case, if you don’t and it turns out to be profitable, you are reinforcing an inappropriate behavior that will inevitably result in disaster. Or, if you don’t and also the loss worsens, you may create a negative cycle of pain, that after started can be tough to stop.

If you’ll alter what these losses mean to you and learn to quickly exit a losing trade as soon as you perceive it as such, you will be ready to unleash yourself from the strain that those losing trades most likely cause you now. This can be why learning to like taking a loss is so important. It puts you in a much better position to take the winning trades.