Have you been losing repeatedly while trading the market? Or have you been searching for ideas on how to bounce back after several losses? I’d advise you worry less.
Of course, when you see your money being feasted upon by market sharks, it’s natural for you to react emotionally; in fact, some traders heart beats faster than usual whenever they’re in such ‘state’. Now, instead of panicking or wallowing in negative thought, I’d advise you man up and strategize on how to bounce back.
Although there are several factors that can lead to severe money loss while trading, but here are unconventional tweaks to help you bounce back to your feet.
Note: See this as an opportunity for you to discover why you’ve been losing repeatedly and how to control it.
#1 Understand what caused your loss.
Yeah, understanding what really caused your repeated loss in the market is not just a smart step to solve this problem but also a great way of knowing the market more. If you find yourself in a situation like this, don’t just act without properly understanding the cause. For instance, John and Tony have been feeling internal weakness lately. And because this symptom is somehow related to malaria John decides to treat himself with malaria dosage without proper medical consultations. But Tony ran some tests and discovered that the reason behind his steady internal weakness was more than just malaria according to the test result.
Now, between John and Tony, who among them took the most effective and convincing step in solving the situation? Of course it’s Tony; he made effort to understand the cause of his problem before solving them. Unlike John who took decision without properly understanding the cause.
So, if you’re that trader who wants to effectively bounce back after a repeated loss, avoid making any decisions without understanding the cause of your loss.
Note: Understanding the cause of your loss will enable you to understand the nature of this loss. Mind you, there are two major kinds of loss a trader can experience. They’re
- Natural loss.
- Self-induced loss.
Just as it sounds, the natural loss is just a normal kind of loss. Statistically, it’s part of your trading edge strategy. While trading, you’ll surely encounter certain loss no matter how disciplined and ‘great’ your analyses are. And such loss is called ‘natural loss.’
The self-induced loss is clearly caused by a trader emotion. This kind of loss is common when a trader makes decisions based on his or her emotions (or feeling). For example, John feels the market will appreciate more, so he over-traded. Unfortunately, he lost his acquired pips because of that decision which was influenced by his greed, overconfidence and so on. Such a loss is a self-induced loss.
However, to effectively bounce back after a repeated loss, you have to be honest with yourself to spot out which of the above mentioned that is the cause of your repeated loss.
#2 Take full control of your negative emotions.
Controlling your negative emotion is one of the surest ways of bouncing back after a repeated loss. On the contrary, do you know that making emotional decisions without in-depth analysis of trades has ruined several trading accounts?
That ado, while the fight against your emotions can only be won by you and you alone, you must have the vim to make it work. Sincerely, the idea of putting your emotion under control is not as easy as it sounds; in fact, it’s a struggle for many traders today, but you still have to figure a way out of this to avoid further damage on your trading mindset.
#3 Take a break and cool off your head.
Apparently, at a point like this, you need to take some time off the market to cool off your head; especially if you’re a victim of self-induced loss.
While relaxing, revisit your ideas, those courses you’ve taken on forex trading, your trading strategy and thoroughly analyze what actually went wrong. And most importantly, learn from them (your mistakes).
‘’success is no accident. It is hard work, perseverance, learning, sacrifice and most of all, love of what you’re doing.”–Pele
Just because you failed repeatedly doesn’t mean you’re not qualified to be a trader or you’re not destined to be a successful trader. So, therefore, never allow your failure to hold you down.
Conclusion: To bounce back from a repeated loss in the market, it’s pretty much advisable that you start with an in-depth understanding of the cause and nature of the loss as discussed above. Always trade responsibly.