Developing a healthy attitude towards losses is a major part of being a successful long term trader.

If a trader experience a major loss they may never recover.  They might spend the rest of their trading
career trying to avoid another great loss rather than going for profit, or they may quit trading altogether.

Here are some ideas on how to keep losses in perspective so they don't discourage you and hamper
your trading.

•    Avoid chasing after the perfect system that promises to eliminate losses.  If someone tries
to tell you, that you will not lose using their system then you should start looking for another system
and don't waist you time with that system.  A system may be perfect but we as humans are not
perfect so losses will occur.

•    Don't equate losses with failure. Loosing is a part of trading.  Learn to manage your
losses and accept a few losses along with your winning trades.

•    Learn to recognize the difference between the large losses and the small losses normally
incurred in your trading.

•    Accept the fact that small losses are as much a part of trading as are profits.

•    A trader needs to restrict the size of their losses while realizing substantial gains on their
successful trades.

•    Focus on the overall gain in your account rather than on the impact of individual transactions.

•    Practice sound money management to restrict the size and frequency of your losses.

Always trade with stop losses.

Make sure your profit target is at least as large as your stop loss.  If you follow this rule you will at
least break even if you have an even number of losses and winning trades.

You can lose more than 50% of your trades and still grow your account if you cut your losses and
let your winning trades run.

In summary we will say you have to get over the fear of losing.