How Can You Turn Back After A Trading Loss?
Almost all traders have faced a tremendous financial loss in their career. Some of them can successfully bounce back to their previous position, while some give up trading. Facing a financial crisis in the Forex market is not so uncommon. In fact, if you start your trading career today, you will face this crisis at least once in your life.
Expert retailers state that every newbie should take a lesson from their business losses rather than just coming back with the vengeful mind. Revenge-trading may further ruin your business, and most of the time, beginners can’t control their emotions. Psychology and emotion play a very significant role in handling your decision. Remember that in Forex trading, no retailer should ever use his emotion to make a decision.
Bounce Back After A Trading Loss
After facing a trade loss, don’t get frustrated yet because the chances are still there. At first, ask yourself a question – why have you lost this opportunity? Always remember that traders face this loss for two reasons – i) he took the decision based on his emotion or ii) his timing was not very good.
Make sure that you are not in the first category because making a decision based on the feeling is never going to help you. On the other hand, if you fall into the second category, then there is hope. It is expected that traders will make mistakes or will pass through the wrong time. But still, there are chances that you can attempt to win future trades. If necessary, you can open a demo account with Saxo and regain confidence. Feel free to join here and start developing your skills like an Aussie trader.
1. Your day
It is a rule that every trader should follow strictly – he will have a bad day for sure, but it doesn’t mean that he should let the day cost even more than the profit. Remember that a loss will make you angry, frustrated, fearful, vengeful, etc. You may even start hating the entire market. Remember that there are over 250 trading days per year. So, be patient.
Your bad days aren’t your fault. Also, there is nothing you can do after facing a financial crisis. In this case, it is recommended not to start trade again until your problem or crisis is solved. Never start trading when you carry an intense debt. All these issues can make the situation even worse.
3. Rearrange Your Concentration
Newbie retailers become overconfident when they win a few trades consecutively. No dealers should think him as an expert in the Forex because to be an expert analyst, and he must know how to analyze the market. You must build your confidence level slowly by accomplishing the trades.
After facing a loss, it is expected that the confidence level will fall. If a retailer thinks that his confidence level has fallen, he shouldn’t get upset about it. Instead of that, he should take a break and take some time to rebuild himself.
4. Practice A Lot
After facing a big trading loss, an effective way to bounce back is to rebuild your confidence level. A clear and well-prepared mind is necessary to start business again. Never enter the trade if you feel that you are not okay. Take a break and open a demo account and start practicing with it. It will make the situation more comfortable for you to bounce back and return to business once again.
5. Small Start
After winning a few streaks in your demo account, the confidence level will slowly raise. After entering the trade, don’t jump to earn more profit. Instead, start with smaller position because it will minimize your loss. It may make a little profit, but at the end of the day, you can raise your confidence level.
These are the best ways to bounce back after a trader faces a trading loss. Once you face a loss, stick to the strategies and don’t get frustrated.