Many traders enter the trading realm with the idea that they will never lose, I'll let you in on a secret... everyone losses at some point. Trading is similar to running a business you need to stick to your business plan and know that you will have expenses. These can come in the form of computer equipment for trading or in losses from trading.
What you must first realize before you get into trade is that you are going to lose money at times, anyone who has ever said they haven't lost money is either a liar or never traded real money. I for one have lost tens of thousands of dollars throughout my trading career and am 100% positive that I will add to that number but on the other hand I have come to terms that losing money is a part of the game. As long as I keep following my trading plan then the losses will be redeemed over time and I will come out on top.
Dealing with losses
Everyone is going to take a loss or a string of losses at some point in there trading career. Start out by preparing your self to lose money, if you can mentally except that you lost X amount of dollars and keep your head up and not break your trading plan then you have a much better chance of being successful then those who cannot.
This is all much easier said then done, I'm sure all traders at one point in there career have said to themselves " I'm not going to get emotional about losses" its easy to say and there is no plan of action behind it. What you need to do is prepare your mindset for losses before they happen always be working on how to handle these losses. Now this mindset needs to be transferred into all aspects of life, by doing so it will make it much easier to work with then if you only used it during the few hours your trade each day/week.
You might be saying to yourself at this point how do I actually prepare myself for these losses?
First you need to make sure that your trading size fits your account. If you have a one thousand dollar account and try to trade 5 ES contracts your going to one blow up your account and two be way to STRESSED out because your risk is WAY to high. Secondly you need to put out the fire before it gets started. The best way to do this is by constantly reassuring yourself that the loss you are about to take is a part of trading.
Throughout the trading day I can have any where from 1-10 losing trades depending on the day, the way I deal with this is constantly putting out the fire before it starts. When I am in a trade that is going to be closed for a loss I tell myself the following, " Losses are apart of trading your trading plan is the ONLY way to recover from losses and your data has shown that in the long run you come out on top" . Now this might sound too easy but it really does work. One of the reasons throughout the trading course it is recommended that you do all the practice work is so that you have a wealth of data showing that if you do xyz then you have a better chance of being successful. Having this data builds confidence and helps boost moral when you are down about a loss.
The next time you get ready to start trading take a few minutes and reassure yourself that no matter what happens you know eventually you'll come out on top. Always put out the fire before it can start!