There are no losing trades

If you have a losing trade that was stopped out, and maybe a string of losing trades, this might upset and frustrate you as a trader. You start to wonder how you ended up on the wrong side of the market each and every time.

It is very important to look at these losing trades differently and hopefully not become frustrated anymore. Frustration, like many other emotions blur the mind which is not good in the world of trading.

Instead of looking at a losing trade as 'just a losing trade', consider the fact that you traded in accordance with your rule base, that you held on to your stop loss, that you did not add to an already losing position outside the buying area etc. etc. If you paid respect to all those rules you have set for yourself, then getting stopped out is not a loss. The losing trade was a relatively small price you paid to get information from the market saying, for instance: "I'm not going to break resistance here, but turn back down instead."

That piece of market information can now be used to enter a new trade. This second trade will then hopefully be profitable to make up for the small loss made on the first trade.

Also, and this is important, before even taking the first trade, rehearse the possible scenario's in your mind before this all happens. Visualize the market movement and know what to do at any particular moment and price level.

Let's finish with a beautiful quote from Dr. Brett Steenbarger: "If you're trading well, there are no losing trades: only trades that make money and trades that give you the information to make money later."