Concentration and Losses

When recovering a sense of strength after a loss, you must remember that every loss is a potential learning experience. There is a tendency to focus on the loss rather than on the new opportunities that loss provides. The key to making the most of a loss is in reframing each issue in a positive light. Ask yourself, what new directions do you see from the loss? How can you turn a loss into a gain? Instead of beating yourself, consider whether you can start buying the stock that you shorted and
lost, or whether it is time to go into a new sector. It may be time to shift to a new angle, new direction, or new stocks. The main thing is to stay focused on your objective of trading to win and to not get caught up in a "poor me" spirit of defeat. Keep considering what was missing, what caused the loss, what more you can do,
and what you can do next. There are always new directions to take.
---- Extract From Trading to Win, Ari Kiev