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To win or lose a trade is a familiar thing. We have experienced bot the joys and pains of it.

However in considering the loss of a trade, the strategy is usually sound, it is the trader that came up short.

Uh huh… that is most likely you! However, help is on the way…. I am going to discuss ways to stop financial losses, and begin being a winner at the trades. Prior to placing orders, you have to decide where your stop loss order will be placed.

No discussion of position entry is complete without a thorough explanation of stops. But I’m left to wonder why so few investors use stop-losses. If you’re guilty of not using stops, you need this information. It might just mean the difference between retiring on time with a healthy nest egg or retiring later and still just “scraping by.”

By planning and placing stops you plan to win, but prepare to take losses and still live to trade another day. So we need to look at the trader psychology around taking losses.

All professional traders understand they must know where they are getting out before they get in. They have to know ahead of time what a wrong trade looks like so they can exit it quickly. This is a rudimentary fundamental that EVERY professional trader knows the answer to.

Can you answer the following questions?

1.) What are the indicators for staying put, or getting out?

2.) Do you have a rule to tell you when to sell a losing stock?

3.) Is there a set point for you to break-even by moving your stop?

Are you unable to answer these questions? You aren’t alone. This indicated that you should be establishing some rules, especially when going to short stocks, but trading rules don’t mean a thing if they aren’t used. This is why we need to have a frank discussion about why you aren’t managing your risks in a hands on way, like a pro should.

There are 2 base reasons why Investors won’t take a loss:

1. Admit they are wrong? No Way!

A realized loss is a great big unavoidable acknowledgment of wrongness. For many traders, this is just too painful to admit. It’s interpreted as an allegory for a total life failure or feeds a persistent, negative self-image.

A trader like this experiences real pain from the loss, and would rather deny it than fess up to the fact that it is giving them the pain. Quite often it requires a total loss before he can begin to change. To quit trading is the only other alternative.

2. Taking that large of a hit would damage their portfolio greater than it can recover from.

The loss is a real loss, it is not solely on paper, the stock/bond option has the value of the quote, even if you don’t see it.

These 2 situations are types of self-denial this problem is common with tons and tons of investors. Observe Merrill-Lynch, AIG, WAMU, Lehman.. and on and on…. you should be comforted to know that this self denial is not limited to just one income level or social status.

Are you feeling uncomfortable with what I am saying?… or powerless, or angry? Good! That is a sign that you are capable of making the changes you need to.

A winning trader will have a different view of losses than a losing trader. He doesn’t take it personally. He takes it as a sign that he needs to revamp his approach or execution no that it is a sign that he as a person is lacking.

Separating themselves from what they are doing is what a winning trader does. Either they know it or learn that the problem is either in their approach or their skills not in their worth as a human being. Changing the pain of a loss into a motivational factor that increases their quest to be a better trader.

You choose what to do with the losses, grow from the pain or give in and quit. Using the emotions for positive growth is what is important, not the fact that you had a loss.

Stick with my proven ETF Trend Trading system and make winning a habit. Study; ask questions and monitor your position size relative to your portfolio and you will end up on the winning side more often than not.

My constant reminders about proper stops and risks are one of the strongest parts of my one year mentorship program. Even after you understand my system 100%, it’s still good to hear me tell you, “Don’t move your stop” or “Be sure to take profits when the system says to, not too early and not too late.” Most my students like the mentorship part as much or even more than the course itself.

Learn how it’s very possible to make 6% per month in your investment accounts using etf trend trading! “Big A” is a recognized expert in the world of etf trend trading system & reveals trading & investment secrets that have been kept under wraps by hedge traders for years. Give him your email & get a free report & webinar today!