How to take a Loss

How to take a LossLesson 9 of 94 min read

Judge by the year

Why a day, a week or a month tells you nothing about whether you are getting better, and who a loss actually belongs to.

The last piece of handling a loss is deciding how much it is allowed to mean.

A day tells you nothing

A losing day tells you nothing about your trading. Neither does a winning one.

The sample is too small. Any set of rules, good or bad, produces winning days and losing days, so a single day cannot separate the two.

One day carries no information about whether your rules work.

Nor does a month

The same is true of a week and mostly true of a month. A good month can come from a bad method meeting a friendly market.

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