Original subtitles

The unfortunate reality is that not all trades work out.

Sometimes we have losses.

I know, sad.

I wish we didn't.

It'd be great if we didn't.

But that's the whole part of the trading game.

You have hopefully many, many wins, but occasionally you have some losses as well.

And a lot of it's just things that are out of our control and sometimes it's in our control.

I mean, not every indicator works perfectly every single time.

Of course, not every trader is a perfect trader.

And there's things like false signals that we learned about that can happen.

And sometimes there's something that you think is an event, something major, but it really isn't.

It's just some rumor, some noise or some just temporary movement, the retracement, whatever it might

be.

And so then we might experience a loss from that or there's unexpected events outside in the wider world.

I mean, think about during twenty twenty in the early days of the pandemic of covid-19 and all that,

how that was a dramatic impact across all different types of securities.

And if we look at let's say specifically, let's say, the stock market, for example, where you have

CEOs of companies as opposed to currencies or cryptocurrency, you know, the CEO all of a sudden dies.

That's unexpectedly, you know, that's going to send a tremendous impact on your and your trading of

that particular security.

So there are things that we can control, things that we can't control.

But one thing led to a couple of things.

I'd just be comfortable that there will be losses at times, and that's OK.

And all successful traders reflect this, by the way.

They're all very comfortable with having sometimes losing positions.

The end of the day, we want to have more profit, more success than losses.

And that's the whole point of the course, of course.

But there are some action that we can actually take to limit our losses.

Some ways of placing orders correctly, and that's with stop losses is an order type.

They'll really help us as really important in terms of technical trading and being an active trader.

They use this to help minimize your losses because you're minimizing your losses.

You've got two good targets set up.

You're using your indicators.

Well, then you're going to have some profitability.

So let's talk about stop losses a little bit here.

And one thing I'd also consider to as part of this, too, is, one, a trade doesn't work out for you

being comfortable with these losses.

You feel bad, right?

You lose money, you feel bad.

You may even questionability and don't, do you?

It's OK.

It's normal.

So don't don't be that you know, don't questionability.

Maybe adjust your strategy if you feel you need to, but you're learning it's all right and you can

always use paper trading and all that to test your ideas and back testing as well.

And you make sure it's denial.

You know, I won't sell at a loss because I know it's coming back.

If you ever see yourself saying that, then you're not so much technical trading.

You're more hoping at that point.

Remember, your your indicators will tell you when to buy, but also tell you when to sell as well as

far as when the trend, let's say, has stopped or slowed down or reversed.

And many times we just get frustrated, right?

It's a perfectly natural human being, emotion.

So I understand that when you're experiencing that, that you're just really experiencing some frustration

and that there are some tactics we can do to minimize that frustration.

And one thing to think of, two, if you think about salespeople.

Right.

I know like what we're going to do about salespeople would think about salespeople.

They face rejection every day.

Lots of people telling them them know all day long.

They got people saying, no, I don't want the order.

They won't take their phone calls.

No, no, no.

But in successful sales, people know this, you know this and aren't actually taught that each.

No is part of a path that leads to a yes.

And so if you get a yes, that's a sale which equals commission, which equals money.

So every time you experience maybe a slight loss that's in your path to that greater yes, that greater

profitability and a stop loss is basically an order type that's going to limit your losses.

It helps overcome things like that.

Knowing a kid is perfect, that there's false signals, big market events out of your control.

And we have an automatic mechanism that we can kind of place ahead of time, though if something happens,

it'll limit your losses.

So you're doing this ahead of time and automating things, and it's all part of the plan.

Again, we have an overall plan.

If you think about, you know, just in general about the plan and where a stop loss might fit in your

overall plan, you have indicators that help you select securities, right?

You look for trends, you're looking for opportunities.

So the indicators helping you make decisions on buying and selling and then you have trading rules around

that to provide the discipline that we learned earlier in the course, as far as, you know, actually

taking action, that you can have some discipline around that.

Maximizing our target profit maximization or picking targets to maximize your profit is also maximizing

profits.

And then another way you can maximize your profits, actually minimize your losses.

And that's where the stop loss and the type of techniques help as far as minimizing losses.

All right.

So in that buildup, as far as what to stop loss and kind of where it fits, but it's so, so important

that you really need to do it all the time.

So let's talk about now in the next lesson as far as what is the stop loss thing and how do I actually

use it?