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Keys to Successful Trading and Learning from Losses

Site Administrator | December 16, 2011

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It is easy to find a trader that is willing to share about good trades or times they called the market perfectly.  It is rare when traders are willing to share about mistakes that can be made as well as ways to avoid those mistakes in the future. We had three outstanding guests cover a variety of topics including:

Special thanks to Raymond Stein of NinjaTrader.com, Adrienne Toghraie of TradingonTarget.com and Pratik Patel of theFuturesRoom.com for stopping by the TradingPub this week!

  • Advanced Charting and Strategies on the NinjaTrader Platform
  • 15 Reasons Traders Lose Money in the Markets
  • 5 Methods for Overcoming Issues of Loss
  • How to Create Positive Anchors
  • Methods for Change
  • Common Pitfalls of Trading and How to Avoid Them

As a trader, it is inevitable that losses will occur.  The important thing is how a trader deals with those losses and whether the trader allows those losses to form bad habits which will continue to breed future losses or learning from the loss and avoiding that same mistake in the future.  Adrienne shared that traders should look at losses as an opportunity to expand rather than having the loss deplete you of your resources and strength.  For those suffering with loss issues, Adrienne recommends that traders:

1.) Be Consistent

2.) Learn to develop appropriate emotions

3.) Be persistent

4.) Be honest with yourself

5.) Learn from losses

Pratik Patel of the Futures Room also shared many common pitfalls that traders face and ways to avoid them in the future.  Some of the pitfalls covered by Pratik were the tendency to trade impulsively, the tendency to miss a trade and then end up chasing it, the tendency to deny a losing position and the tendency to enter a bad period of trading immediately following a good run.  Some of the keys to avoiding these pitfalls include Risk Analysis, Patience, Capital Management and avoiding over trading.

We have posted links to each of the three segments of yesterday's presentation below so that you can review the excellent education that was shared!

NinjaTrader:  Platform Demo (Advanced Charting and Strategies) 

Adrienne Toghraie: All About Losses 

Pratik Patel:  Common Pitfalls of Trading and How to Avoid Them

Next Tuesday, the TradingPub is going to be occupied by three outstanding options traders, please click the following link to join:

Occupy Options Event

Cheers,

The TradingPub
“Trade, Talk, Learn – Cheers to Success”
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Risk Disclaimer: Past performance is not indicative of future results. Futures trading involves substantial financial risk. Views of guest commentators do not represent those of TradingPub.com.  Article intended for educational purposes only and not meant in anyway as a solicitation to buy or sell certain securities.  Please consult your personal financial advisor before using this information for your own trading purposes.