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How to control ourself when we lose money?
- Thread starter Volfixtrader
- Start date
One big tip. It is the quality of the trades and not the quantity of trades. What good does say 20 bad trades you place instead, of say just 5 focused trades? I had around 7 call option trades I placed like 2 months ago (some trades I placed I month ago). I lost 3 call option trades and was hanging on to 4 trades going to January 2021. The losses were small so, no biggie. Decided to sell 3 of the 4 trades where I had substantial profits 01/08/21. Have one trade left expiring 01/15/21. Slightly, positive now on the remaining call option. It may still end up profitable by a decent amount. Moral of the story, it takes just a few good trades to make it worth your while. Quality trades over quantity trades. Don't spread yourself too thin. Focus on your stockcharts and pick the best setups with possible best returns. Follow the trend always. Before you even get into any trade, you have to make sure risk management and position sizing is taken care of. Then, each trade is equal to the other trades where you do not care which ones turn up hugely profitable or turns into a loss.
Agreed, planning does help. Also I guess it is with good practice that one learns to deal with such issues.Having a plan in place helps a lot in such situations. Losses are a part of trading, one should not get stressed because of those, rather learn for them.
Correct! Practice teaches a lot. Every trader should give good amount of time to explore and practice here.Agreed, planning does help. Also I guess it is with good practice that one learns to deal with such issues.
No one wants to suffer a loss of any kind, but the forex market is so volatile that you can’t expect winning every time. To control yourself, you can analyze your decision, have patience and try to understand the reason behind your loss and learn from it in order to avoid more loss in future.
I would say if you have a way to hedge your real value for money you should focus on that. This will keep your confidence high and let you keep your momentum high for other trades. Trade regularly, this will help you manage your stress when the market is not favourable for your trades.
Losses are certain in the Forex market as it keeps changing. I would suggest to keep patience and improve your skills so that you could overcome the risks and don't lose money.
Losses are part of trading life. You can’t make profits everyday. Make a habit of analyzing your bad trades and learn from them. Check what went wrong and refrain from repeating those mistakes. Motivate yourself that you can do better in the next trade.
Now that is the most important thing to do. One who knows where he's going wrong, will be able to rectify the mistakes faster.Check what went wrong and refrain from repeating those mistakes.
The best thing would be to prepare yourself beforehand of every situation that has high chances of happening.Losses are part of trading life. You can’t make profits everyday. Make a habit of analyzing your bad trades and learn from them. Check what went wrong and refrain from repeating those mistakes. Motivate yourself that you can do better in the next trade.