If you learn to make your losses work for you, they can become your ally, not your enemy. Last time we talked about loss and how it can galvanize you to refine your system and improve your approach, setting you up for success as a futures trader. It’s like they say in sports, “No pain, no gain.” Loss motivates you to learn.
Every trader, no matter how successful, loses money trading. There is no Holy Grail in futures trading, no perfect system that always wins. But there are tricks and techniques you can learn to keep your losses small. You can learn these tricks and techniques in my Futures Trading Secrets Study Course. You can spot a successful futures trader by the fact that his losses will be consistently minuscule. Novice traders give themselves away every time by the enormity of their losses. It takes practiced skill and discipline to maintain a consistent pattern of small losses. Success is not so much a matter of how much you win, but how well you manage your losses.
The hallmark of a successful futures trader is his ability to understand failure. He learns to read and understand the market through the small losses, the failures, it hands him. Whenever the market takes an unexpected turn up or down, doesn’t do what it should do, catches us unaware, it is giving us little warnings, usually by handing us a loss on a trade. Successful futures traders are able to tune into these warnings, to see the patterns in their losses and to incorporate that knowledge into their trading system.
If a reliable technique suddenly breaks down, the successful trader does not doubt the validity of technical analysis. If a proven strategy suddenly loses its accuracy, the successful trader does not abandon it. He looks beyond the individual event for the pattern it reveals. In every loss lies the path to success. The successful futures trader knows that loss cannot be avoided so he turns it to his advantage. The successful futures trader learns to listen to his losses, to embrace them and learn from them.
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