There is no opportunity without risk.So learning to truly accept risk is a first step to trading freedom. Once in a trade, a trader manages strategies for the purpose of taking profits or in the case of losses protective stops. Trading involves speculation no matter how probable an outcome is, which by definition involves risk. So accepting losses are a necessary part of trading.
The objective is to approach the market in a disciplined objective manner, with a high focus on managing risk (losses). Overcoming losses can be a big psychological hurdle during a quest to become a profitable trader. Any trader refusing to accept loss is as ridiculous as a pilot not accepting turbulence during a flight, and that trader should consider not trading.
Any winning strategy necessitates the ability to lose properly. It is the capacity to deal with one's losses that enables winning traders to keep a positive mental attitude. This also enables them to progress and effectively maintain their winning ways.
Losing properly is not easy and therefore requires some skill. Traders need to be able to learn from their mistakes. They review their trades and ask themselves if trades actually met the criteria of their trading plans, and if it was a good setup that was consistent with their strategies. If an error in judgment is made they learn from it.
The discipline involved with losing properly has to do with your taking losses at the right time. Did you sell at an intelligent time, with your stop placed just beneath support? Or did you not take your intelligently placed stop and sell at a lower price than you should have? Discipline is also necessary when preparing for the potential loss. Make sure that your stop allows for a level of risk that does not exceed the maximum loss in your trading plan, and is compatible with your strategy. Do not trade more shares than your maximum loss allows. Trade This will help you to be comfortable with losing properly.
Seasoning has much to do with maintaining a positive mental attitude. Seasoned traders do not let their losses get them down. They never let a win go to their head, or a loss go to their heart. They understand that the loss may actually be a friend, as it creates an opportunity to learn. They apply the knowledge and use it to improve their trading and maintain a winning attitude while accepting and brushing off the loss.
Trade with a plan.