When loss is not a loss in trading ? – #AnirudhSethi

In trading, a loss is not considered a loss if it is part of a larger strategy with a specific risk management plan. This means that the loss was planned for and is within the trader’s established risk tolerance.

Additionally, a loss can also be considered not a loss if the trader was able to exit the position before it reached its maximum potential loss, for example by using stop loss orders. The strategy of cutting losses short is a common one among traders.

Furthermore, a loss can also not be considered a loss if the trader can learn from the experience, and apply the knowledge gained to make better trades in the future.

Overall, a loss in trading is only truly a loss if it is not part of a larger strategy and if it cannot be used to improve future performance.

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