Here's how to overcome LOSS AVERSION in 10 ways
1. Focus on risk, not reward
Train your brain to ask, “How much can I lose?” instead of “How much can I make?”—this helps you stay defensive and survive long-term.
2. Use a stop loss on every trade
A stop loss protects you from emotional decisions and locks in your maximum risk before the trade even starts.
3. Risk only a small % of your account
Never risk more than 1–2% of your total capital per trade—this keeps a few losses from destroying your account.
4. Accept that losses are normal
Losing trades are part of the game, just like missed shots in basketball. What matters is how you manage them.
5. Journal every trade
Write down why you entered, where you exited, and how you felt. This makes you self-aware and helps you avoid repeated emotional mistakes.
6. Avoid revenge trading
Don’t chase back losses by jumping into a random trade. It almost always makes the loss worse and damages your mindset.
7. Detach emotionally from money
Don’t treat each trade like life or death. Think in probabilities and long-term outcomes—not individual wins or losses.
8. Backtest and know your edge
Confidence comes from knowing your strategy works over time, even if it loses 4 out of 10 trades.
9. Celebrate good trades, not just profitable ones
Focus on following your process, not just making money. A well-executed losing trade is a win in disguise.
10. Zoom out and play the long game
Don’t let one trade define you. Compounding consistent, small gains is how pros grow accounts while avoiding emotional destruction.
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