Simpler traders understand that it isn’t all just a numbers game. Being a successful trader is just as much psychology as strategy. Learning how to overcome trading losses and knowing when to exit a trade and just move on takes traders to a different level.
Sometimes things happen out of a trader’s control – earnings reports or bad news – that cause a loss. Other times, a costly mistake was made and that is when going back to the drawing board to improve skills is a must.
Traders who let their emotions talk them out of following their own rules have only their own actions to consider. Of course, blaming isn’t any good for anyone and it’s important to remember that every trade is a learning experience.
Also, when a stock moves in a different direction than anticipated based on an event associated with the stock, such as earnings, this is certainly out of the trader’s control.