No one likes to take losses.
Even at the level I am in trading, I don’t necessarily enjoy losing.
But being able to lose is a crucial part in becoming a successful trader.
If you can’t learn to lose well, then you won’t ever be able to trade for a living or simply make an income from the markets.
The fear of losing is what causes you to hesitate and miss the profitable trades.
Which is why I wanted to share with you in this email how I am personally able to remove the fear of losing.
Here’s what I want you to understand first.
When you fear an outcome, more times then not you actually create the very environment that causes the outcome you’re afraid of.
Whatever you constantly think about you will attract.
Fear is an emotion and that means it is you who is creating the emotion of fear.
The markets are not emotionally charged, they’re neutral.
And that’s good news.
Why? Because it means you can take control over the emotions you feel.
You’re behind the wheel and you can decide how you feel towards losses.
You can fear them or you can see them as a necessity to succeeding as a trader.
It’s how you ‘think’ towards losses that will determine the emotions you generate when presented with risk.
I look at losses as a necessary part of doing business as a trader.
I see them as being normal and I do not attach myself worth to any loss.
The majority of the time you fear losing because you don’t expect to lose.
You hold this unrealistic expectation that you can trade without losses.
It’s ludicrous.
I expect to lose, I face it head on and I do not shy away from the fact that when I place a trade there is a probability that I will take a loss.
When you confront your fears they shrink.
Stop denying the fact that you’re operating in a business where losses are normal and your fear of losing will diminish.
If you can’t handle the size of the loss or risk on any given trade, downsize.
You fear losing because you can’t accept the risk.
That’s why you need to find your ‘risk tolerance'.
This means identifying how much you can risk per trade, percentage wise, and not fear taking the loss.
For every trader this will be different.
But once you find your ‘risk tolerance', you will no longer fear losing.
I predefine my risk and know how much I am willing to lose on a trade, without it causing me emotional discomfort and friction.
I'll chat to you again in Monday's email,
Lawrence 'expect to lose, accept the risk and the fear of losing with shrink'.
PS: I am no longer taking on any new clients for The 12 Week Blueprint.
All seats have been filled.
To ensure you don't miss the next opening - click here and book a free call with me, we'll see if you'd be a good fit for working together to get you paid from the markets and I will add you onto the waiting list.
You will then be notified first when seats become available again.