6-23-2023: Losing Money

Dealing With Loss 

Dealing with loss is something every traders has to go through. It’s a horrible feeling, but if you’re not careful you might have to deal with it. That basically means if you’re not managing risk the right way, if you’re positions are too large (you buy too many shares or contracts), if you trade options instead of stocks (for beginners), then you can lose money – or worse – your entire investment! 

Investing and trading does come with a risk, and that’s why a lot of people will tell you to stay away from the stock market unless you’re putting $100 into an index fund every week. That’s not bad advice, it can be great advice, but traders are risk takers. They know how to take calculated risks and they know how to profit off of those risks. 

Anyway, if you find yourself in a losing position, just know that it’s money. It will come and it will go. It would also be a smart idea to not be dependent on trading alone as your primary source of income. Do your best to earn more from other streams. Whether those other streams are a regular job, real estate, side gigs, parties, freelancing or whatever else you can think of. 

Watch the video above for more info!