Dealing with Losses.

Perfectionists are often motivated by avoidance. The need to avoid unpleasant emotional experiences. Traders who seek the perfect system are also likely to be motivated by the need to avoid unpleasant experiences.

With trading losses, the only pain that you will suffer is the emotional reaction to a loss. If you concentrate on avoiding losses rather than on maximizing your overall gain, you are unlikely to succeed at trading.

Traders may all incur the same loss but suffer vastly different emotional responses. A lot depends on their past experiences not only while trading but in the broader arena of life.

More competitive u are, More uncomfortable u are about taking loss. From an early age, we programmed to compete, to win, to accomplish, to be top of the class, to always be right & to succeed at whatever we set out to do. Losses are equated with losing to be avoided at all costs.

Newcomers to trading often start off with a string of positive experiences. Unfamiliar with the basics of money management, they are often over-confident and prepared to bet large amounts of their capital in the expectation of further gains.