Trader Dale Volume Profile
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Trading psychology<br />
Good losing trade<br />
Good losing trade is potentially dangerous, especially for newbie<br />
traders. I call this kind of trade the "hope-killer". You have a good<br />
and solid strategy, you do your analysis thoroughly, you executed<br />
your trade exactly according to your trading plan and then the trade<br />
ends up as a loser. You did your best and still, you lost. So, the logical<br />
There will be losing<br />
conclusion is that the strategy doesn't work, right? No, the strategy<br />
probably works just fine but it only works for example in 60 % of trades. You need to<br />
cases (which is a good win rate). You only hit the remaining 40 % in accept that and<br />
which the strategy fails. It is even possible that you do everything make your peace<br />
right again and still, there is another losing trade and then another.<br />
with it.<br />
This is still statistically possible. The most important thing is to stick<br />
to your rules, don't change anything, focus on analysis and flawless execution. Not on the shortterm<br />
result.<br />
I heard a really fitting and helpful quote, that I try to stick to. It goes like this: “When you want to<br />
win a tennis match, you need to watch the ball. Not the scoreboard.“<br />
Some time ago, when I opened a pretty big trading account, I started with a drawdown. I took a<br />
loser after loser. I wasn't exactly happy about it but I was experienced enough to know that this<br />
is statistically possible and I didn't freak out. I continued doing my analysis thoroughly and I<br />
followed my trading plan 100 %, no matter that first trades were all losers. In the end, it turned<br />
out just fine and my account grew consistently.<br />
So, always remember – no matter how good your strategy is, no matter how thorough your<br />
analysis is and no matter how flawless your execution is, there will be losing trades. You need to<br />
accept that and make your peace with it.<br />
Bad losing trade<br />
Bad losing trade is a trade that was based on a skimp analysis, no analysis or on a “gut feeling“.<br />
Such trade can also be a poorly executed trade or a trade you took without any real thinking. A<br />
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