You know the difference between winning and losing trades — we’ve all experienced both and know the joy and the pain well.

With trading losses, the majority of the time the shortfall comes from the trader and no the trading strategy.

Uh huh… that is most likely you! However, help is on the way…. I am going to discuss ways to stop financial losses, and begin being a winner at the trades. Prior to placing orders, you have to decide where your stop loss order will be placed.

If you want to talk about position entry, it should include a comprehensive explanation of stops. Why do so many investors fail to take advantage of stop losses? It you are one of those not using them, listen up, you’ll want to know this. Stop losses can spell the difference between meager late retirement and on time comfortable retirement.

By planning and placing stops you plan to win, but prepare to take losses and still live to trade another day. So we need to look at the trader psychology around taking losses.

A professional trader needs to know where the exit point in their trades are before they start trading. Having a visual of a wrong trade is key so a trader can know when to get out fast. This is a basic knowledge that all pro traders need to have.

Can you answer the following questions?

1.) How do you know if you should sit tight or cut your losses?

2.) When a stock is losing, do you have a guide that lets you know when to sell?

3.) Do you have a rule of when to move your stop to break-even?

Are you unable to answer these questions? You aren’t alone. This indicated that you should be establishing some rules, especially when going to short stocks, but trading rules don’t mean a thing if they aren’t used. This is why we need to have a frank discussion about why you aren’t managing your risks in a hands on way, like a pro should.

Refusal by an investor, to take a loss falls under two headings:

1. Admit they are wrong? No Way!

For many traders a realized loss is a huge admittance of being wrong and that is just too hurtful to acknowledge. To them it is linked to being a failure at life and their self image is directly affected by this perceived failure.

They personalize the loss and experience emotional pain. Many traders prefer to remain in denial instead of acknowledging their losses are causing them pain. This type of trader often has to lose it all before he begins to change (or gives up trading).

2. Their portfolio, because of its size, can take a hit that big.

Losses aren’t just on paper, they are real. The loss is what it is and the quoted price is it’s value.

These two categories of people are not looking at the trading business with clear eyes. They are looking at it with blinders on and this narrowed vision is plaguing traders everywhere. Big business, small business, large portfolio and small, the elite crowd and the common man.

Are you squirming in your seat because as you read this article you feel powerless and/or angry? That is a good thing. It tells you that you are ready to make the change.

The winning trader uses a different strategy from the losing trader by regarding the pain from the loss in an impersonal way. They use the loss as a sign that something went wrong with their approach, or their execution, but NOT that something is wrong with them.

Winning traders separate who they are from what they do. They know, or learn, that their trading faults lies in their approach or their skill level but not in their fundamental worth as a person. The pain they feel is quickly transmuted into motivation, which fuels their desire and determination to become a better trader.

These are responses you learn and you can control them. Losses bring pain AND the possibility for growth. It is all in what action we take after the pain comes that is most important, not the actual losses.

Stay true to my tried and true ETF Trend Trading System and develop the habits of a winner. Apply yourself, ask questions, and observe your position size as it relates to your portfolio and your trading trends will move to the winning side.

My constant reminders about proper stops and risks are one of the strongest parts of my one year mentorship program. Even after you understand my system 100%, it’s still good to hear me tell you, “Don’t move your stop” or “Be sure to take profits when the system says to, not too early and not too late.” Most my students like the mentorship part as much or even more than the course itself.

Learn how it’s very possible to make 6% per month in your investment accounts using etf trend trading! “Big A” is a recognized expert in the world of etf trend trading system & reveals etf secrets that have been kept under wraps by hedge traders for years. Get his free report & webinar today!