HERE IS THE POST:
The best way to trade is not to stop losses or take risks. It's to make mistakes and learn from them.
If you're not losing money in today's market, it might be because you are doing things wrong that could have led you nowhere in the past. And if you're not losing money right now, it might be because you are just going through the motions without ever putting a stoplight on your mistakes.
Let me give you an example. Imagine you bought 100 shares of Apple stock yesterday and paid $2 per share. Today, it's trading at $30 per share. Now, imagine you had invested 100,000 in Google's (GOOGL) stock yesterday and received a dividend payout of $0.50 for every 100 shares. You're now holding $100,000.
Now, imagine that instead of investing, you bought an article from this company, got paid $3 per share, but lost $72,000 on it yesterday (a loss of almost $400). This is a classic example of the stop-loss ratio in action.
In short, stop losses are not just about losing money, they're about taking risks. They encourage you to lose money and to be more cautious in your trading decisions. And if you're using stop losses as an excuse to keep going, it's because you never actually took a loss or took too many losses before today.
So the next time you feel like you're losing control over your investments, just take a step back. Ask yourself, "Am I losing money? Is this a signal that I'm making poor trading decisions?" And if so, let's talk about how we can make it better.
Stay calm and be patient with yourself, because today is the day when it all comes together.