Loss on Forex Trading? Not Always Bad
Correct. You don’t misread. Loss on forex trading is not always bad.Maybe there are those of you who immediately commented in disbelief, or even tilted towards the title of the article this time. Maybe among them are:
” No need to entertain yourself Bro … , loss hurts, point!”
Normal. When I first heard my senior talking like that, my forehead wrinkled. How is the story, how come loss is n’t bad? After all, profit is far better than loss ?
I was quite surprised when he said that not all profits were good. But everything was bright for me when he explained a few things. That is what I will also convey in this article.
“Losing With Dignity”
Once upon a time, samurai could still maintain self-esteem despite losing a battle. The path they chose to defend their dignity was to commit seppuku , suicide in the style of a samurai in the presence of an enemy. As bad as any defeat suffered, the community – even the enemy – will continue to respect it as a great and brave fighter. There is no humiliation, but an honor for those who commit seppuku. I call it losing with dignity , losing but dignity.
Of course in trading we don’t want to do “trading suicide” . Even if we have a loss , it is not permissible to cause capital to be depleted. What we want to imitate from the samurai is his spirit of maintaining dignity. If you are forced to lose , then do it with dignity.
How exactly is “ dignity loss “ ?
When you trade, of course you use the trading system that you have tested before, so you are sure of the accuracy and ability of the system to produce consistent profits. Any trading system must have rules that must be obeyed. If you run these rules properly, consistent profit opportunities are in sight.
Well, on the other hand you also have to be aware that no matter how sophisticated a trading system is, it won’t make you “know everything” like The Oracle in the Matrix film trilogy. There is a time even though you have followed all the rules in the trading system, but the losses still occur. Based on the concept of limiting risk, you still have to cut-loss when the trading system advises you to “save yourself”.
You enter and exit according to the correct rules. If it turns out there is a loss , that’s what is said to be “losing with dignity” . When you experience loss but are dignified, you can say, “Oh, the market is not agreeing with me.”
“Losing In Sorrow”
This is the term I made as opposed to “losing with dignity”. In what circumstances can a trader be said to be losing in sorrow ?
Easy. You have understood that forex trading – besides saving extraordinary potential also has risks. For this reason you need a trading system, capital management and good risk management. All of these things are contained in the trading plan .
But even if you are aware of all that and – say – have made a trading plan, but you DO NOT RUN the trading plan well, then loss , that is what is called losing in sorrow .
When you experience a loss because you are not doing the right process, people will say, “Yes, yes … the only way to trade is wrong …”
“Profit With Pride”
True samurai never use cheating methods. They fight in a straight and right way. That is what causes their victory to be very meaningful.
When a trader manages to make a profit after trading his plan well, his labor pays off. At that time the benefits gained will be very meaningful.He gets profit with pride.
Why? Because the profit he obtained was through the right process. The analysis done is mature, the position taken is in accordance with the rules set out in the trading plan. At that time, you are worthy of pride and people will respect you. “Naturally he profits, the trading system is good and he is disciplined”.
The opposite of ” profit with pride ” is “profit with shame”. In what conditions is “profit with shame” ?
Simple. When you make a profit but not in the right way, or you just don’t know why you can profit, that’s “profit with shame.” Ordinary people call it hockey . If this happens to you, in the future you will not be able to repeat that “achievement”. Instead, the “losing in sorrow” will befall you.
Hopefully this presentation is quite understandable. See you again.