Today I want to show you how to move on from a bad investment or trade.
In other words, how to let a bad trade go without any feeling of regret that can then affect your future investments and trades.
I was recently asked this by one of our Blueprint students, and here are a few pointers to help you out:
STEP 1 – Have multiple positions
The easiest way is to have multiple positions on at any one time.
You see when you have all your eggs in the one basket, it’s extremely hard to separate your emotions because you’re then reliant on that one investment or trade to make all your profits, and when it doesn’t work out the way you expected, then you immediately fall into the disappointment trap.
Whereas if you had many positions on, who cares if 1-2 don’t work out when 8-9 of the others do.
This way you can calmly get in and get out of the investment without any emotional attachment at all.
STEP 2 – Don’t have any expectations
Don’t have any expectations of how much profit that investment or trade will make.
Sometimes you’re lucky and it works out right away, other times it takes a few weeks.
STEP 3 – Expect 1-2 out of 10 investments to not work out
Here I do want you to have expectations.
Because I want you to expect that 1-2 out of every 10 investments will not work out. That’s been based not only on our own experience but also from the experience of our 400 plus students we currently have.
Losses are just part of this investment game and you must accept this fact and move on.
If the position becomes a loss, know it was the 1-2 that was expected to be a loss, let it go and move on. Just say “Next!” and the next 8-9 will easily cover the small loss you have.
I hope these 3 key points will help you become a more disciplined trader and investor that is able to buy and sell without regret and move on to the next thing.
If it has, make sure you share this post to help others.