What are some things to keep in mind as a beginner in trading?
TRADINGFEATURED
"This mindset is crucial for maintaining a healthy perspective on trading"
My stop loss being hit every so often, is merely the cost of doing business.
Don’t take the loss to the heart. Experiencing stop losses - a predefined price level at which a trade closes at a loss - is a normal occurrence.
These losses are not personal failures, they should be perceived as a normal cost of participating in the trading business, much like the operational expenses that any other conventional business incurs. Just as a business owner expects to spend money on supplies, overhead, and other operational costs, you should anticipate that losses due to stop-loss orders being hit are part of the cost structure of trading and routine aspects of the trading journey.
This mindset is crucial for maintaining a healthy perspective on trading. It helps you avoid emotional reactions to losses and prevents them from becoming discouraged or overly cautious. Instead, it encourages them to view stop losses as a necessary expense for participating in the market.
Losses are not a reflection of failure, but rather a calculated and expected aspect of the business. Embracing this perspective allows traders to approach the markets with a clear and rational mindset ultimately enhancing their chances of success.
Credit: Quora