Managing losses is as important as earnings!

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.

Hi readers! Today I am going to touch on the topic of managing losses in trading. Yes I know, nobody likes to mention about how much they lose in trading. Everyone likes to post and share about their attractive ROI, their earnings from trading. However, have you wondered how much they do lose before they achieve the highs?

Majority of individual investors are focus on shooting for the moon, gunning for that golden goose of profit, often not realizing that they are undertaking an enormous amount of risk at the same time. And when their trade goes wrong, they struggle to manage their losses, both financially and mentally.

If you rinse and repeat this many times over, an individual will eventually give up on investing. Sounds familiar? I myself went through this toxic cycle too. But I decide to sit down, internalize and evaluate my trading process. I realized that the issue was I did not consider my risk to profit ratio before I execute a trade. So since I prioritize that over potential profits, my trading account started to grow, and surprisingly more than I anticipated.

So if you are struggling to generate profits from trading, you are not alone. Just take a deep breath, sit down and be honest with yourself. Evaluate your whole process of executing a trade, identify the areas of improvement, read books, listen to podcasts and watch youtube of successful investors. Internalize the information and do some trial and error till you get improved results.

Lastly, always remember investment is a marathon, not a sprint. Whatever that runs fast, it will eventually fall fast and hard. Stay invested and treat yourself every now and then if you gain small wins along the way.

@pawsandprofits - Specialist in combining FA and TA for options selling and swing trading.[Claw]