The first thing you have to accept is that losses are totally normal, acceptable, and an integral part of trading. You cannot trade without both gains and losses.
So the answer really is simple: The profitable trader ensures that the losses are less than the gains.
How does one do this? Well, I think most of the answers have already been mentioned:
- Use a clear and explicit trading strategy.
- Stick to the rules
- Apply a strict and sensible risk exposure policy relative to your equity size
- Apply strict and modest money management controls, parameters, and targets
- Do your homework concerning factors affecting your market. (I don’t mean views and opinions. I mean whether there is a bank holiday ahead, or a major data release, or other significant event. These may or may not affect your strategy, depending on your timeframe, etc. But it is good to be aware of these and how they impact on near term price action)
- Journal all your trades, whether actually taken or not. Analyse them meaningfully.
- Never chase the market (there is always another trade ahead - unless you blow your account!)
- Never worry about losses if all your trades are managed according to your criteria
Regarding strategy, you need to find an approach that suits your character, your practical circumstances (job, etc) and your available equity. You can succeed whether you are a day trader, or a swing trader, or a longer term position trader. The key is to stick to your routines and rules as dictated by your strategy.
A longer term trend trader may win big gains occasionally, but can suffer a lot of small whipsaws in between. A day trader, on the other hand, (which is me) can pick a set number of pips per day and earn a steady income, but will miss out on the longer trends when they occur.
The point is you need to know what kind of trader you are, what kind of moves you can profit from, and stick to your profile. Keep your losses lower than your gains over time and you are in the top echelons.
But, of course, all this requires discipline, patience, controlled emotions and great objectivity (remain detached and remote from the screen and watch the “big picture” - and not get sucked into just watching the price going up and down.)