Secret Three: Be more than willing to take small losses.
In the real world, don’t believe it when someone says that he or she knew the direction a market would take ahead of time. In fact, there is no one who knows. Everyone is just acting on his or her best knowledge at the moment when entering a trade.
In trading, there is not anything that is for sure except for one thing. While we cannot predict (or control) how much we will win at the time we enter a trade, we can always know (or control) how much we might lose in the trade. And here again, AbleTrend helps traders keep losses within acceptable limits. On entering the trade, AbleTrend stops tell traders the location of the key support and resistance levels (which, in turn, define the stop values). Therefore, among many uncertainties, at least we know what the possible loss is for any trade. In fact, this is a big advantage in trading. Why do people lose big in trading? It is because they don’t know where to place their stops to exit a losing trade. Here is an example of recent market chart.
In order to make big profits, you must be more than willing to take small losses. Bear in mind that “smaller” losses are a part of the overall plan of achieving “bigger” sized profits. Without small losses, you won’t be able to achieve big profits. Conceptually, AbleTrend tenaciously follows the snakelike movements of a stock or futures market, catching the breakouts early on. In some cases, these breakouts are temporary and as a result the AbleTrend trader could easily get whipsawed in such an environment. However, in the end, with clear vision we understand that when the market does truly break out, we will catch the ride and achieve our end goal of taking bigger gains as a result of what is inevitable: the trend! AbleTrend is designed to take chances with small-calculated losses, and when a trend develops, to ride with it to achieve optimal profits. As in any successful business, small losses are a part of necessary expenses that enable you to profit in the end.
I communicate with many traders on daily basis. Some have told me they could not pull the trigger in trading. The problem these traders have is a psychological one. They are so concerned about winning, they refuse to take a loss while it is still small. I tell these traders not to think about winning. It’s too heavy for anyone to think about. If you think that way, it means that in your mind, this trade must be a winner. In fact, there is no way one can predict which trade might win. The market has its own way. Our task is simply to follow it. We make our best decision based on what we see at the moment, but if the market changes its mind, what we can do? We just might lose on this trade. If that’s the case, don’t fight it. Instead, think about how much you might lose in this trade, and then ask yourself if you can afford that. Thinking that way, it will be easier to pull the trigger, and gradually you will become better and better at it.
In the upcoming blog we’ll introduce Secret Three: Be More Than Willing to Switch Positions
The best way to learn a skill using trading software is by practicing it. Though the webinars and free one on one trading sessions will help you to prepare for actual trading on the live markets, it will not tell you how your psychology will react to the experience. This insight is gained only through experience, so give AbleSys trading indicators a try today. To get extra 10% off for AbleTrend 7.0 30-day trial, here is the code: WTMF10 (order online).
You may also learn more about AbleTrend on our blog: blog.ablesys.com
And watch archived sessions from our introductory and member’s webinar series:
Click here to view our youtube page
I welcome your feedback. Did you like today’s message? What other topics would you like to see? Please let me know at gracezh@ablesys.com
If you are an AbleTrend user this is a great time to share and introduce this great tool to your family and friends for the prosperity of 2016 and the years to come.
Happy Holidays!
Grace Wang
AbleSys Corp.
gracezh@ablesys.com