Most people will tell you that there’s no way to guarantee a winning trade.
Heck, most people can’t guarantee that you’ll win 50 percent of your trade.
There are at least three ways to insure that every trade or investment you make is a winning one.
Treat Each Trade as a Lesson
Even if you lose money on a trade, that doesn’t mean that you lost. You can learn from each trade–even losing ones.
Each trade that loses you money may be teaching you a vital clue about your investment theories, or systems. If that’s true, that s0-called, “losing,” trade is invaluable. You may lose a little now… but reap great rewards later.
In a game of chess, this is like sacrificing a piece to move your opponent into check.
Losing Some Beats Losing It All
People hate to lose more than they love to win, but that doesn’t stop them from making stupid decisions. One decision is not to set a stop-loss — either mechanically, or mentally — for their trades. The result is they follow some really bad investments right into the gutter.
If you lose 3 percent, that’s actually a win compared to losing 10 percent, or 50 percent, or 100 percent.
Despite losing financially, a losing trade may end up as a victory if you follow your trading discipline.
This discipline will pay off later with lower losses and higher gains.
There is no end point in trading. (Well, maybe when you die, I guess.) As long as you save some money, you have a chance to recover your losses and seize gains. Ultimately, learning how to correct your attitude about losing is the greatest win a trader can have.