As traders, we must understand that there will be losing trades for every

xx trades made. The irony is most traders cannot accept this fact!

They

are not at all tolerant of losses, which keeps them searching for strategy

after strategy. To be honest, it will be easier to trade if you can accept

the fact that losses in trading are inevitable. Because of this known

possibility, you are less likely to overtrade and will be in better control

of your fear and greed.

On this topic, it brings me to discuss stewardship and ownership with

you. Between fund managers and retail traders, who do you think will

do better? All my bets go to the fund managers. This is because the

fund manager's role is to keep his job by trading strictly by the rules of

the trading firm. A fund manager, in this case, is a steward.

SECRETS TO SUCCESSFUL TRADING

On the other hand, most retail traders feel that they are the bosses of

their money. They want very much to control all decisions and, worst

of all, outcomes. It will be hard for them to cut loss as it is a sign that

they are wrong. They feel that losing their hard-earned money is out

of the question. This makes following rules extremely challenging for

them and breaking their own rules is the best choice.

When the market is bad, retail traders refrain from trading as they are

fearful. They fear losing their money. On the other hand, fund managers

continue trading according to rules, as that is their job. To be successful

and profitable in trading, we must change our mindset and values.

We are not the owner but stewards of money. How well you manage

this money will greatly determine your trading results. Be a steward of

money and focus on trading well instead of focusing on the dollars and

cents. I reckon a change in values is like a paradigm shift. Traders who

changed their values to the right direction are less likely to break their

trading rules and will ultimately gain success in trading.

Connect with me now on Facebook group ,

join me at my trading group >> The Systematic Trader

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