types of losses in trading
Trading Psychology

Two Types Of Losses

Most traders know two things. Winning and losing.

You learn more in losing than in winning.

Winning is great. It feeds your ego. It makes you happy. You get richer.

Losing naman teaches you lessons. I lost a lot when I was new sa trading. My losses taught me a lot.

Today I’m going to share with you some of those lessons.

There are two types of losses.

One is good and the other one is bad.

The first type: losses that are a part of your rules.

I like this type of losses. Here look.

This was my port just before I cut my losses. My sell signal was hit so I sold/exit.

This was after I exited my position.

I eventually sold my two remaining position nung nagkasell signal ako. One was gain the other was a loss.

I cut my losses three times this week. Last one was yesterday.

I bought DD using TITO (a strategy that I will share in Trader’s Lounge soon) I bought it at EOD. Sa run off the price was at 17.72 so I bid at 17.74. All of a sudden may nagbid sa 17.76 so since pasok sa TITO na set up si DD ngbid ako ulit sa 17.76 since di ko macancel na sa runoff ang first bid ko sa 17.74. Nabigyan naman ako shares but not as much as I wanted. End ng trading hour marami pa di na served na bids sa 17.76.

The following day we are in a tour but I’m monitoring the chart. Tight stops ni TITO since parang bounce lang din sya na set up but modified. An hour passed my sell signal was hit. I hated it but I had to follow my exit so I sold.

I figured I need to do a blog about cutting losses so I took a screenshot of the price after runoff. To my surprise mas lalo pang bumagsak si DD. I normally don’t look back after I sell my position but this time I had to para may ma e share. It did not matter umangat man o bumagsak si DD after ko sell.

I have one stock sa portfolio as of today.

The second type: losses outside your rules.

This is a bad type ng loss. Ito yung nakakaipit. Ito yung nakaka wipe out ng account.

If your strategy tells you to sell and you don’t honor it, worse things happen. Yung akala mo low na may e lower pa. Yung hold ka kasi akala mo lower na may e lolowest pa.

I’m currently in Singapore having vacation with my family. Its fun pag marami kayo especially sa rides.

I and my family, together with family ng mentor ko will tour Europe by end ng March but sa first leg lang kami ng tour magkakasama. The rest solo naming family.

I only have one stock na hawak kahapon. Lets see how it will perform today.

If you want to learn more about stock trading join our Facebook Group called Trader’s Lounge

Our advocacy is sharing ideas, experiences and knowledge to traders for FREE. We offer free Technical Analysis, Fundamental Analysis and Market Psychology learning materials for free. 

We also have weekly lessons over there. We created different trading strategies like MAMA which made a lot of traders profitable. Other trading strategies include FISHBALL, PAPA, CALMA and more. We want to offer OFW’s, Employees and all Filipino people a chance to learn without paying a cent. 

We also have a Youtube Channel wherein I myself discuss strategies and trading related topics. 

Come join us. Let us push free learning. 


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