For traders of any type, one of the most important skills is to adapt to a losing investment, ensuring that it doesn’t affect any future trades. This is of course a lot easier said than done, with the aftermath of a substantial losing investment akin psychologically to dealing with grief. According to Elisabeth KÃ¼bler-Ross in her 1969 book, On Death and Dying, there are five stages of grief, which are (a) denial and isolation, (b) anger, (c) bargaining, (d) depression, and (e) acceptance. The quicker the investor sees himself as part of this process, the sooner they can return to trading. Here are some tips as to how to do so: 1) Avoid Denial Psychologists all agree that lingering for too long in the first stages of grief prevents a person from moving on. As a result, it is essential that an investor accepts responsibility for the losing transaction and does not engage is a lengthy and ultimately fruitless process of blame, rather than accepting responsibility. It’s always your decision, so take ownership and move on. 2) Analyse the Loss Before going any further, you need to dedicate a little time to analysing why you made the loss in the first place. If the loss occurred because you deviated from your trading plan, it’s important to take a little break from trading to consider why you deviated from your plan and how to ensure that this doesn’t happen again in the future. In previous articles, we’ve stressed the importance of adhering to a plan, and often a loss should focus your attention back on the plan. On the other hand, if losses occurred whilst implementing a well thought out plan, you should not be discouraged. In the words of the very successful businessman Steve Jobs, “I’m the only person I know that’s lost a quarter of a billion dollars in one year… It’s very character building.” 3) Correct Your Plan This is of course connected to the point above, but if you are able to fine-tune the plan in response to a setback, then you are well placed to take advantage of the loss you have incurred. If you react quickly enough, you may well be ahead of the game in terms of placing your next trades, especially if you have been able to highlight the exact market conditions that have turned the conditions against you. 4) Return to Trading Often traders who have suffered a loss report being unable to place another trade for some time for fear that they will lose money again. You have to fight against this feeling, and make sure that you feel confident enough to put the loss behind you and trade again. Of course, this doesn’t negate the need to stick to a plan, but should encourage you to put losses behind you quickly. Overall, the most important thing to remember is that every trader will suffer losses whilst trading, and that your first priority is to learn to enjoy the successes whilst learning from the setbacks. Yael Warman Yael Warman Yael Warman is a creative writer with a strong background in marketing and advertising. Yael has been a writer for over 10 years and has worked for clients in various industries as well as her own companies and is currently the Content Manager at Leverate. View All Post By Yael Warman Basics & IndustryForex Basics share Read Next The week ahead: NFP buildup, FED, and BOE stand out Yohay Elam 6 years For traders of any type, one of the most important skills is to adapt to a losing investment, ensuring that it doesn't affect any future trades. This is of course a lot easier said than done, with the aftermath of a substantial losing investment akin psychologically to dealing with grief. According to Elisabeth KÃ¼bler-Ross in her 1969 book, On Death and Dying, there are five stages of grief, which are (a) denial and isolation, (b) anger, (c) bargaining, (d) depression, and (e) acceptance. The quicker the investor sees himself as part of this process, the sooner they can return to… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.