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Browse Topics:    Trading Strategies    Research & Analyze    

Lee Bohl on Learning from Mistakes

Lee discusses how you can benefit from waiting a bit before pulling the trigger on a trade.

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I think one aspect of trading is learning from your mistakes. We call that 'don't lose the lesson.' We're all going to have bad trades. Now, I should say that a losing trade is not a bad trade, necessarily. For instance, if you go into a trade and you get stopped-out because you followed your rules, that is not a bad trade. What I'm talking about as a bad trade is when you didn't follow your rules, or you let your emotions take over, or you followed the wrong rule. That's a bad trade and those are what we can learn from. So what you want to do is see what you did wrong, but then put it aside. What you don't want to do is linger on those bad trades 'cause it cuts your confidence. So what you have to do is learn from your mistake, move on, and then reevaluate and see if you're doing better after that.

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