It’s one sign that you’re new to trading or investing if you react too emotionally to a single trade. You can’t be a winner in one day or one trade on a short time frame. Success happens over a long time. Market edges show up over time with more trades.
Profitability in trading comes from bigger wins than losses, not from the correctness of your trades. After you enter in trading, how you manage it will determine whether or not you make money. You don’t make money just by getting into a trade. You make money when you get out and lock in your gains. In the world of trading, no one is going to win all the time. Because the market changes, all winning systems have downswings.
Taking your signals with the right position size, stop losses, trailing stops, and profit targets is the only way to make money in trades. Don’t let a single trade or loss define you or take over your emotions. This is how the market works, and so will your equity curve.
- There are 100 more trades to come.
- Every trade is just one of them.
- Any other way means that you are trading too big or want to be right all the time.
- You can have a bad day but make money the rest of the week.
- There may be a bad week but a good month.
- You can have a bad month but a good year.
- Then, you can make a big account.