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 just the cost of that lesson.
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
Main Topics Covered in Best Loser Wins
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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. -
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 not a magic formula, but it will change how you think about losing—and that can make all the difference.
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.
