How to lose properly...
OK, so you’ve read the Previous article and you have accepted the nature of trading for what it is; a random distribution of winning and losing trades.
Now, let’s discuss in 5 simple steps how you can lose properly on any given trade that you take:
The first step to losing properly is accepting that you will have losing trades no matter what. Once you accept this, you can move on to the next step, which is about devising a plan to minimize your losses as much as possible.
Next, determine the dollar amount or R value you are comfortable with potentially losing on any one trade. As I’ve written about before, we do not measure risk in pips or percentages, we measure it in dollars or pounds, euros, etc.
Now, you need to calculate your …