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Showing posts from November, 2014

You'll learn more from your losing trades than your winners

After a series of poor trades, I recently went back and read this Dan Zanger quote:

"You'll learn more from your losers than your winners will ever provide."
Now I believe in studying success and I also think you can learn a lot from your best trades and life decisions. In fact, I sometimes think that people put too much emphasis on the value of learning from one's mistakes instead of studying what went right (and the reasons why). 

Having said that, I'm a big believer in journaling your trades and taking the time to honestly examine your results. That includes our missteps, the less than optimal trades, and those flat out wrong or near-disastrous moves that take big chunks of money out of our accounts.

So if you've hit a rough patch in your trading or your investing returns aren't all they could be, maybe it's time to take a good, hard look at your records and figure out what you can learn from your losing trades. You may just improve your long-term res…

Admit when you're wrong... and profit (Jesse Livermore)

In trading, it's best to quickly admit when you're wrong. 

If you can keep your losses to a minimum, you will be able to preserve your trading capital (along with your mental capital) and improve your odds of profiting from future opportunities.

As Jesse Livermore once said, "I have long since learned, as all should learn, not to make excuses when wrong. Just admit it and try to profit from it."


Can you think of a time when admitting you were wrong saved you from prolonged agony or bigger trading losses? Did you ever turn the situation around or even go on to profit from it? Share your story with us in the comments and on Twitter.

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