Best Loser Wins, by Tom Hougaard: Book Review & Summary

Best Loser Wins

By: Tom Hougaard

Best Loser Wins did have an impact on my trading overall. Or more specifically, it altered the way I look at losing trades. A losing trade is only a loser if you don’t learn anything from it. If you can analyze what went wrong, the amount of money you lost is the cost of that lesson. So don't waste that loss.

Hougaard’s main idea is simple but powerful: the best traders aren’t the ones who never lose, but the ones who handle losing the best. He says, “The best loser wins.” That stuck with me. It’s not about being perfect. It’s about being honest with yourself, learning from your mistakes, and not letting your emotions take over.

"I have no special abilities, with the possible exception of one. Do you want to know why I am so good at trading? I am exceptionally good at losing. When speculating in financial markets, the best loser wins. Don't underestimate these four words."~ Tom Houggard, Best Loser Wins

Hougaard talks a lot about controlling your emotions—fear, hope, even boredom. He points out that trading goes against human nature. Most of us want to avoid pain and chase pleasure, but good trading means cutting your losses and letting your winners run. That’s not easy, but it’s necessary.

Main Topics Covered in Best Loser Wins

• The Power of Mindset
  Your mental approach matters more than any tools or strategies. Staying calm and clear-headed helps you make smarter decisions, even when things aren’t going your way.
• Adding to Winners
  Make more money when you're right. Relearn the process of taking profits to create larger winners and smaller losses.
• Learning from Losses
  Losing is just part of trading. It’s okay—if you learn from it. The saying “The best loser wins” really hits home. Managing your losses well is what separates good traders from the rest.
• Focus on the Process
  Don’t just chase money. Instead, focus on sticking to your plan. When you get better at your process, your results will improve over time.
• Handling Emotions
  Fear, greed, overconfidence—these can mess with your trading. The key is learning how to control those feelings so they don’t control you. (Another great book on this topic that I would recommend is Beyond Greed & Fear, by Hersh Shefrin.)
• Reframing Losses
  Cut your losing trades quickly instead of hoping they’ll turn around. Let your winners run and grow instead of closing them too early out of fear or impatience.
• Preparation and Visualization
  Mentally prepare for losses so they don’t catch you off guard. Review your trades often to see what worked and what didn’t, so you can learn and get better.
• Staying Motivated
  Use negative feelings like frustration as fuel to push yourself forward. Recognize bad habits and work on breaking them so you can trade smarter.
• The Mental Battle in Trading
  Trading isn’t just about the market—it’s about controlling yourself. Success comes from overcoming impatience, fear, and all those instincts that try to mess with your head.

If you’re serious about trading, Best Loser Wins is worth your time. It's a very underrated book on the psychology and behavior's involved in trading, and day-trading specifically. It’s not a magic formula, but it will change how you think about losing—and that can make all the difference.

Best Loser Wins

A high-stakes day trader reveals why conventional thinking destroys trading accounts and how embracing contrarian psychology leads to consistent profits. Learn the counterintuitive mindset that separates winning traders from the majority who lose money in the markets.

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Best Loser Wins: Why Normal Thinking Never Wins the Trading Game – written by a high-stake day trader

If you've enjoyed this summary of Best Loser Wins, I'd recommend checking out my summary and review of A Complete Guide to Volume Price Analysis, by Anna Coulling. This is one of my all time favorite trading books. Every great trader understands the importance of being able to analyze volume compared to price movements.