What Is Loss?
The cost of learning, not a sign of failure
▸ Story
Your child buys a toy for £3. It breaks. They sell it for £1.
They spent £3. They got back £1. They are £2 worse off.
That missing £2 is loss.
In trading: you start with £50. You make a trade that doesn't work. Your account becomes £48. The missing £2 is loss.
Loss is not “you're bad at trading”.
Loss is the cost of being wrong sometimes, the cost of learning, and something we keep small on purpose.
★ Key idea
Loss = “Less money than you started with after a trade—and we manage it, not fear it.”
✦ Quick quiz
1. In the broken toy story, how much did we lose?
2. If we lose £2 from £50, what is our new account size?
3. In trading, what should we do with losses?
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Wild and Wise
A friendly book for building confidence and smart thinking, one page at a time.