Learn from losses

How do you personally approach and learn from your trading losses?

Some losses are unavoidable unless you have a strategy which has a 100% win rate, which is impossible.

So you need to record enough information to decide whether you followed your strategy -
it is no longer working on this market right now but is OK for others
you followed your strategy but it is failing everywhere
you followed your strategy and did everything right but the market simply did something that was not likely to happen.

It’s easy to eliminate mistakes if you have a precise check-list for your strategy.

  • Finding an edge by creating a strategy that works.
  • Approaching the market having in mind the uncertainties behind it.
  • Approaching these uncertainties with Stoic mindsets
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Just as @tommor stated, you won’t win 100% of the time and sometimes the market just doesn’t give the chance to make a profit. But, do ensure that you minimize your trading errors (chase the market, oversized position, etc.)

I always try to find strategically what was wrong with the trade and consider candlestick patterns and ranges.

I have been on break and I have been going through all my trades and why I lost. Its just to try to recalibrate and see where I went wrong.

Losses are part of the game. Analyze, reflect, and focus on the lessons and improvements for future trades.

Great to review. Don’t limit your review to the losing trades and don’t limit your thinking to assuming that you must have done somethng wrong.

Check your winning trades to see why you won. Check your winning exits to see if they were eaarly or late.

Check the trades you didn’t take. Check the entry orders you cancelled.

By backtracking and figuring out what happened and if it’s something you did (like not follow trading plan) or something you wouldn’t have been able to control.

I prioritize emotional detachment. Recognizing that emotional trading often results in hasty decisions and amplified losses, I focus on controlling my emotions. This approach helps me make rational decisions even in the face of adversity.

How do you do this? Do you have actual steps you take? Maybe a mantra or something you think about/tell yourself?