Forex Learning: Thomas is given money by his parents to buy snacks at the shop. But when on the trip it turns out that money fell and disappeared. He was sadly mixed up.
Agus buys eggs from farmers and he will sell them on the market. After he peddled his goods, it turned out that the market price of eggs dropped drastically so he was upset because he suffered a loss due to his merchandise not being sold.
What can you conclude from the 2 stories above? You can see that losing money or experiencing a loss is very disliked by anyone. Likewise in the world of trading, loss is one of the things that traders cannot avoid in the world. As time goes by, many traders who have begun to understand losses are part of forex trading. But apparently, many traders also find it difficult to accept these losses.
When We Cannot Receive the Loss
The ability to accept losses in the world of trading can be a key factor in your formation to become a successful trader. I am not saying that with losses will motivate you to be better; but rather how you deal with losses significantly so that you can influence your success rate in trading.
If you refuse to stretch your chest when you experience a loss, it will lead you to the next loss. Learning to accept and handle losses in trading is as important as making better trading later on.
Here are seven steps you can take to survive and even develop when you suffer losses:
- Write down your trading results as they are.
Write down your trading results as they are. Don’t hide these losses under your carpet. You need to learn from these losses so you need to write them down. Include how you look at the market at that time and how the market conditions and indicators are used to make that decision.
- Your Trading Evaluation
After the trading time is over or when the market closes, return to what you have written and see what can be learned. Do you miss reading the market? Did something fail to check? Do you take a position even if you don’t meet your trading system criteria?
- Use loss as an opportunity to learn:
“What can I learn from this trading result? Ask yourself, Is there additional information about market conditions that can be obtained? Is there something about your trading behavior that needs to be fixed? Whatever it is, you have the opportunity to understand something new, and valuable!
- Take immediate corrective action
Do you need to modify your trading system? Do you need to improve your personal discipline? Whatever you have learned, take action immediately.
- Take care of your emotions
You always have a choice when you act. You can accept loss as an inevitable part of trading and be grateful that you can learn from it, or you can think otherwise and make yourself feel more negative than before. The point is you have to keep your emotions.
- Remember, trading is probability based
Every trading you have the probability of winning and possible losses. Trading is always uncertain. This is the law of trading probability.
We all need support from fellow traders too. Talk to your trading friends, mentors, partners or partners. This helps to uncover what is wrong with you and you may get a different perspective.
Placing the seven steps in place, you will definitely be on your way to surviving and even developing from losses.