This is what holds many traders back.
The small wins.
Yet we love to take those small wins, and avoid small meaningless losses like the plague.
We are afraid of losses. It doesn’t matter it it is big or small, that L is scary.
It’s all about the fear of the loss.
Here is the rub: the fear of the loss is always worse than the loss itself.
Losses don’t hurt as bad as you think.
Remember what it was like getting a shot when you were 10 years old? That drive to the doctor was terrifying. But then you turn your head, feel that little jab, and it’s over and you wonder what you were so scared about.
Trading losses are the same.
Not only are losses not so bad, but often it means you are trading correctly.
I embrace small losses.
The reason is small losses combined with big wins means you are doing something right. On the other hand, small wins mean you are doing something wrong.
It’s the small wins that hurt.