May 22, 2024

Business Bib

Business & Finance Blog

How to get back to the position where you were

3 min read

You can make continuous profits. You can become a profitable within a short time period. You can trade Forex like a pro. So likewise, you may fall really down in trading. You may end up facing losses than profits. It can take a lot of time to become successful. So it is all about possibilities because we cannot be certain. To be honest, it is not possible to be certain. However, the point is you may lose the good position you had in trading. You may struggle to get back to the place where you were. You don’t have to complicate the situation of bouncing back to where you were. The hardest part of this situation is recreating the image. Handling the mental damages that were created. Obviously, you must worried about earning a huge loss but it is Forex. It doesn’t promise great profits. And the next problem is you will lose confident in trading. You might start to fear the market. Both fear and confidence have the same effect, you can be blinded by both. It is always better to be moderate about these two factors. If you don’t want to put yourself in a bad situation, you shouldn’t be too confident and too afraid to trade. After a huge loss, bewilderment is the reaction of every trader. But successful ones come out of it and face the reality whereas naïve traders don’t. They keep thinking about the places where it went wrong. So learn the ways to handle big losses and get back to where you were.

Managing your losing trades

Regardless of your skills, you will always have to lose trades. But this doesn’t mean you will not be able to make a profit from this market. Even if you lose 50% of the time, just by following 1:2 risk reward trade setup, you can easily make money. Managing your losing trade is the most important aspect of currency trading profession. Always believe in your trading strategy. Never change your trading system after losing a few trades. Consider those as your business cost and you will be fine.

Fight back emotions

You are immortal if you don’t feel sad or hurt about the losses, so it is okay to be emotional. But these emotions shouldn’t become a barrier to bounce back to where you were. Like in most Forex tips fighting back emotions is the best way to handle big losses. The very first step you should take is to stop trading if you have just faced a huge loss. You shouldn’t let this loss, cost you even more. You should fight back inner conflicts such as fear, frustration, revenge, hate and it goes on. Right after a big loss, none of the traders including professionals will have a clear mindset. You have a lot of time to become successful, you don’t have to rush. You can still make money, you have still got time. If you lose today, you may win tomorrow.

Acceptance is the key

The damage has already been done, you cannot control it. But you can overcome the situation. Maybe you should just look at this day as a day of experience. You should consider this day as a life-changing day so that you would be careful the next time you enter a trade. However, most traders deny the truth but it is a bad move when you deny the reality hits even harder, so accept it. It is the only key to bounce back.

Remind the goal

How can you give up so easily? It is not right for a trader to give up trading. Even if bad days come your way you should keep going. It is what a successful trader does. He knows his ultimate goal so he wouldn’t let it slip his hand. As a naïve trader, you should keep reminding yourself about the ultimate goal.