Tuesday, 4 October 2016

Psychological Impact of Losing Money – Week 59 – 4-Minute Drill for Traders

This video identifies what one should expect when he or she loses money when trading on the stock market. The video identifies also how if one does not expect to lose the money he or she trades with, this can have damaging psychological effects. Therefore, the video identifies that an individual must be willing to lose what he or she trades, and thus provides detailed instructions for trading, and what should occur when trading so that an individual can be comfortable with trades that he or she makes.

https://www.youtube.com/watch?v=zerHj987-U0

Key Takeaways:

  • You must understand the consequences of losing money in the context of a larger long-term positive outcome
  • You must maintain balance in your trading and follow your plan no matter what or suffer the consequences
  • You must understand the risks your are taking and stay inside the limits you set.

"Emotionally you should be completely comfortable with the risks you are taking."

Originally published at Psychological Impact of Losing Money – Week 59 – 4-Minute Drill for Traders

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