Why We NEED to Lose To Be Successful

by | Jul 4, 2023

There is a paradox to succeed when trading.

And that is, we need to lose to win.

We need to make sure though that our potential losses are ALWAYS less than our gains.

I want to go through some of the reasons why losses are not only inevitable but also essential in the journey of successful trading.

Reason #1. Losses are Inevitable

Financial markets are largely unpredictable due to a plethora of influencing factors such as:

  • Demand & supply

  • Geo, economical and political events

  • Algorithm volume trading by institutions

  • New influx of traders into the market.

  • Unpredictable micro and macro events

The unpredictable nature implies that losses are part and parcel of trading.

Not even the most seasoned traders can boast of a 100% win rate. Most successful traders end up with a 48% to 70% win rate.

So, if you’re looking for a high win rate – you need a reality check to stay grounded and humble.

Only then, you may have a chance at winning in this difficult game.

Reason #2. Losing Months Will Happen

Even when you work and follow proven and profitable strategies, you will face a time of losing streaks.

This can occur over weeks, even stretching into months.

You might lose a small chunk of your portfolio, but then you’ll need to the time to recoup and bring your portfolio back to ATH (All time highs).

Reason #3. Unfavourable market conditions

Markets are intrinsically volatile.

Not only that but, small markets tend to follow the bigger leaders.

And when the price fluctuations are erratic by nature, it carries the stocks, indices and other markets with it.

E.g. We could see the S&P 500 move in a sideways consolidation period for three months in a row.

And now matter how good the prospects are within a smaller market, they tend to follow the main indices.

So, we have to just wait for the better times and for the more conducive market conditions.

This moves on to a bigger element:

Reason #4: Economic Cycles

Broad economic cycles include:

  • Accumulation

  • Mark-up phase

  • Distribution

  • Mark down phase

Then there are periods of a boom, recession and a crash.

These will also impact market trends and lead to losses.

It’s important to learn to hedge positions (long and short) and know when to be neutral (no holdings).

You’ll need to learn how to adapt and integrate losses into your trading. That way, you’ll be more prepared and less emotional for when they come.

Let’s sum up the reasons:

Reason #1. Losses are Inevitable

Reason #2. Losing Months Will Happen

Reason #3. Unfavourable market conditions

Reason #4: Economic Cycles

 

 

Trade well, live free.

Timon Rossolimos
Founder, MATI Trader

 

CONNECT WITH US:

 

Facebook Group:
http://www.facebook.com/groups/matitrader

Website:
http://timonandmati.com

Discord:
https://discord.gg/c8f37kyv35

Order via our secured website:

 

 

Click here to order The Complete Charts Patterns and Candlesticks Guide by MATI Trader book

 

Or order via EFT payment”

 

Click here to order the book via EFT (all info in the invoice). 

 

Enjoy and remember…

 

 

You won’t need to buy or order another book on chart patterns and candlesticks ever again as I will be updating it very often and will let you know. 

Trade well, live free.

Timon Rossolimos

Founder, MATI Trader

 

 

Not sure the best way to get started with MATI Trader?

 

Follow these steps to start your successful trading journey.

 

Step #1 – Get The FREE MATI Trader Resources:

> MATI Trader System Programme Lesson 1

> Live Zoom events

> Articles

Step #2 – Own The Complete MATI Trader System:

> MATI Trader System Programme

Step #3 – Become A VIP:

> Premium MATI Trader Service

Step #4 – Connect With The Community: 

> Facebook

> YouTube

> Instagram 

Where can we send your FREE "24 Chart Patterns and Candlesticks Book"?

Trade well, Build Wealth.

Check your e-mail now - You'll love it!