Dealing With Losses
Every strategy loses some of the time, that’s not a flaw to fix, it’s a cost built into the maths from the start, which makes how a trader handles the losses that do come at least as important as how they handle the wins. Every strategy loses, that’s priced in A strategy with a genuine edge can still have a win rate under 50%, wins bigger than losses, and still come out ahead over enough trades, which means losing individual trades is completely normal and expected, not a sign anything went wrong. Treating every loss as a problem to solve misunderstands what the strategy’s own statistics already assume will happen. ...