Have you ever seen two people in the same situation act differently? With trading futures this is really evident. Only one side gets to make money.

How a person handles sinking (losing money) will help shape what they become as a trader. The second thing that my mentor every told me was learn how to lose. Winning is easy. Here are some key things about losing:

Losing is a result. A loss is a culmination of an action or inaction, own it.

You can’t control when you lose only how much. It is ok to lose, it is not ok to lose big.

In the beginning, it is easier to learn through losing than winning. Understand why you are losing and winning. Losing is what makes you put in the work. Winning is what makes you continue to put in the work. Allow yourself the second opportunity.

Don’t run on a broken leg. The worst day is always the second day. You will get better at healing until then recognize it.

Stick to your limits. If you cannot stick to your loss limits than you should not be trading. It creates a path you do not want to go down and hole that is hard to get out of.

Run it like a business. If you are losing more than you are making, risk less. If you can’t make $200 you should not be risking $800 a day.

You can’t prevent yourself from losing but you can control everything before and after. That is the best that the market has to offer. It has to be enough. Lose with a purpose or it will always be greater than your wins. Don’t epitomize the definition of insanity. Clear your head and come back, however long that takes. Learn how to lose so that your winners count. Exit every trade the same, with confidence.

No trader likes to lose but the best traders know how to swim.

From Trader Habits blog...