To accept a stop loss
To accept a cut loss, the most important thing may be your mindset.
If you are a predictor or a fortune-teller, you start to view “taking a loss as a forecast failure, a wrong, a failed trade,” making it harder to accept.
※【Fortune teller】 A faction that believes the market should be predicted and acted upon, also known as【Forecasting person】
Conversely, if you can think differently from the fortune teller, you won’t view “taking a loss as a failed forecast,” so it becomes easier to accept.
The correct way to more readily accept a loss is,
“If you trade according to the rules, the outcome—whether a loss or a profit—means you made a correct trade, a successful trade.” This is the belief.
From the perspective of fortune tellers, this way of thinking would be incomprehensible and cannot be accepted.
● Predicting what will happen next ● Checking the answer when you open the chart next ● Why did the prediction differ? Make these a daily habit That is a huge mistake. Practice predicting daily? Training? Even after many decades, you will not become able to predict accurately. “Because the future has not yet occurred, how can you predict it?” “A riddle that no one in the world can predict” Moreover, some people say they must bet money to take forecasting seriously and engage in real trades. Some call this validation. This is an action that will surely lose money.
【Fortune Teller】 A faction that believes the market should be predicted and acted upon Also known as【Forecasting person】 All beginners eventually join this faction. They think all market information—news, technicals, fundamentals, etc.—exists to forecast the market’s movement. They hold a strong philosophy: making money in the market equals having forecast accuracy. They aim to predict the market, but many have never questioned whether the market can actually be accurately forecasted. The belief that predicting the market is natural is unquestioned. This comes from how difficult it is to distinguish whether forecasts happened by chance or necessarily. Fortune tellers include many seasoned veterans with 30, 40 years in the market. Most stay here for life.
【New Trader × Rich Trader Steve Burns, author】 New Trader “I still can’t explain well how someone who doesn’t forecast price movements makes money. Isn’t forecasting the only profitable method?” Rich Trader “First of all, I must say that’s impossible. The future hasn’t occurred yet, so how can you forecast it?”
【Testa who made 10 billion yen】 For example, people often ask, ‘What do you think the Nikkei will do in the future?’ But I answer by saying I won’t answer. You can’t read it, and if you try to read it, you won’t win. Trying to take a position by reading something you cannot read leads away from winning. So that question itself is odd, and I won’t answer. No one in the world can predict it, right? In other words, even if you were right, investing based on such a supposed forecast would be a negative factor for winning. Reading itself is meaningless. A quiz that no one in the world can solve.
【Legendary group of traders The Turtle Trading Magic, by Curtis Faith】 Friends of mine who know I succeeded as a Turtle would come to me and ask repeatedly how the market’s future movements would unfold. As a member of a renowned trading group who earned millions, they believed I must possess the ability to read the market’s direction. My standard answer, “I have no idea,” must have shocked them. In fact, I had no idea at all. I didn’t trust my ability to predict the market. Rather, I intentionally avoided trying to read the market’s future.
