On Becoming a Great Loser

Easily overcome trading losses with the Loss Ritual

When I began trading I chased after the big wins that I thought would push my equity curve up. To my surprise, even when I hit a big win, my losses had a way of wiping it all out.

During that time, my trading was like a roller coaster ride – huge wins followed by big losses. Looking back, I realized I was ignoring a crucial aspect: learning to handle my losses more effectively.

Fortunately, I recognized this (better late than never) and started focusing on improving how I handled losses. I was reading "The Disciplined Trader" by Mark Douglas at the time, and it triggered a shift in my mindset – one of many. I understood that there was still a lot of work ahead.

In trading, you gotta learn to be a great loser in order to become a big winner.

In my last newsletter, I talked about how to practically cut losers short. In this one, I’ll talk about the psychological side of losing and share an exercise that can help you overcome losses faster.