This is about handling losses, but mostly mistakes, in a way that leads to constant improvement and better results over time.
I use a three step process that has worked for me and got me the best results. Take responsibility, detect the mistake, and apply the fix.
Key takeaways
Blaming the broker, the firm, or the market is unproductive because you cannot learn from it.
It does not mean you did something wrong, but responsibility gets your mind searching for ways to improve.
Look back at the trade and figure out exactly what went wrong, like poor stop loss placement.
Take the lesson straight into your next trade instead of leaving it for later.
A short note and a picture of the bad trade let you review it often and avoid repeating it.
1% better every day is 365% in a year, so slight adjustments transform you as a trader.
Step one, stop blaming others
A lot of the time we blame the broker, the prop firm, and the market, anyone but ourselves. I used to do this too, mostly in the past.
Part of your responsibility is to select the right broker and firm in the first place, and Propvator is where you can pick from firms we have vetted.
I am not saying every firm and broker is completely fair. Sometimes they are not, and that is real. However, blaming them is unproductive and will not help you improve.
Step two, detect the mistake
Once you take responsibility, your mind starts thinking of ways to improve. So the next step is to look at the trade and find the mistake.
A couple of days ago on GBPJPY I took a trade, it hit my stop loss, then went right back to my profit. The mistake was clearly stop loss placement.
The market was in an uptrend and stayed that way, so it was easy to enter another buy right after with a better stop. It hit my take profit without going near the stop, a 1 to 2 risk to reward that almost doubled what I had lost.
“As long as you take responsibility, your mind really starts thinking of ways to improve.”
Step three, apply and journal it
After you detect the mistake, apply it instantly on the next trade. If you have a journal, write a short note with the result and the reason, and attach a picture.
You can review that often so you do not make the same mistake again. The vast majority of profitable traders keep a journal and use it regularly.
You can improve even on winning trades. Maybe your stop was closer than it should have been, and you can tailor your strategy for specific pairs, since certain pairs need a wider stop.
Why small improvements compound
It is never a good idea to completely change your strategy or drown yourself in information. It is always a good idea to make slight adjustments that improve what you already have.
That might seem small day to day, but the way those improvements compound can take you from an average trader to an advanced one.
1% every day is 365% in a year, almost four times better than before. In short, it is very hard to make a big improvement in one day, but easy to make small ones that add up.
When you are ready to take responsibility and trade with a vetted firm, compare reliable prop firms on Propvator.