This may surprise you, but I believe one of the best things that can happen to a brand-new trader is to take a loss.
Don’t get me wrong. It’s great to win, like we have, and be profitable on your first trade, first five trades, or even your first 10 trades. But an immediate winning streak like that may be setting you up for disappointment later.
Too much success can give new traders an overinflated amount of confidence. You start to think that trading is easy and there isn’t much to it. That whatever you used to choose the winning trades is ALL you will ever have to use; that you found the magic bullet to trading success. You start taking more and more risks… and then disaster.
Look, I can speak to personal history that all I have mentioned is possible… because it happened to me when I started out.
I look back and think if I had suffered a loss or two or more to start, I would have had to learn earlier what it takes to manage a trade when it goes against you.
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