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You'll often hear platitudes about learning to love your losses. Not on these pages. Learn to loathe your losses.
To be honest, loathing things is far easier than loving them anyway. Like this abomination of an idea 👇
Where there's blame, there's a claim, right?
Yeah. That works both ways though 👇
"Hi, I'm Mr Market. I blame you (for taking sh*t trades), and now I'm claiming compensation from your account balance"
"Would you like to deposit more funds and try again?"
Let's be clear. Brokers aren't all angels who can do no wrong , although some are better than others. If there's a pricing error, or a mistake on the brokers' part, you can usually kick up a fuss and get reimbursed.
If your order gets slipped when trading a high impact news event (liquidity dries up across markets until the risk event has passed), that's all on you, not the broker.
These providers are heavily regulated and the risk disclaimers couldn't be clearer 👇
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
Crystal clear. Every UK broker displays a disclaimer like this prominently on their website. The FCA insists on it. The likelihood of traders losing money is no industry secret.
The idea that you should be able to claim compensation for losing trades though, it's just so... repulsive.
Because it cultivates entirely the wrong relationship with loss and responsibility...
If you're not prepared to take ownership of your losses and loathe them for what they represent, how can you ever expect to make progress (in anything, not just trading)?
Over time, your relationship with loss evolves. Losses just represent the cost of doing business. Inconveniences to be minimised, rather than avoided. A minor irritant rather than something to loathe. Feedback.
Early on though, they're rich sources of information. Evidence of outright mistakes (these are the ones to loathe), the impact of simple variance or volatility on trade outcomes and so on.
But this is true of EVERY trade. Not just the losers (also why 'learning to love your losses' is half-baked philosophical bullsh*t).
Take a simple business for comparison. Most shops have a basic working model. You buy goods at wholesale prices with the intention of selling them for a higher price.
If you're unable to turn a profit on that deal, do you go crying to the supplier?
They didn't warn you that you might not make money on that deal. The fact that you didn't understand the market and the risk of loss is somehow their fault?
You demand a refund?
OK. Getting a little intense. Point made.
Shielding people from the consequences of their actions robs them of those lessons.
For clarity, I'd rather it wasn't so easy for retail traders to pile onto these platforms and lose money hand over fist, but it's absolutely their right to do so.
Nobody fully understands the risks before they do anything new. You learn as you go. We call it experience. And 'losing' is part of that process.
As Vince Lombardi said
“Show me a good loser and I'll show you a loser...”
Less well-known was the follow up...
“But show me a gracious loser and I’ll show you someone who will always be a winner”
Cheesy, but I like it.