The One thing that is Certain in Financial Trading…
The one thing that is certain in financial trading is LOSS. There are no way that you can avoid this and you have to learn to work with losses with your trading.
Newbie traders move from system to system looking for the ‘Holy Grail’, that’s the trading system that yields no loss and unfortunately, that’s not possible.
What you need to do is to find and work with a system where the wins completely outweigh the losses. That doesn’t mean that you physically need to have more winning trades than losing trades. Some systems allow for the trader to be right only 30% of the time and still make money because the risk to reward ratio is such that allows this.
Trading is a life long learning process and learning to deal with losses is one of the first lessons that one must tackle early on in order to process towards being a successful trader.
I personally have found that telling myself that losses were normal over and over again helped me get over it. Also, when I trade 1% of my account, I accept that if I lose my trade, I will be 1% down. 1% of your account isn’t going to kill you or your account and much easier to swallow. In my early days, I would trade up to 10% of my account or more (on relatively much smaller accounts) and if I lost, that’s a big chunk of your account gone and it hurts. I’ve found that it’s not the monetary value that hurts, it’s the proportion of money lost in the account which hurts so if you can trade no more than 3% of your account for each trade, you should find losses much easier to accept.