In Forex trading, there is no way that all transactions are successful. Always there are times when a trader suffers losses. Loss – as much a part of trading activities as well as profit. The main feature of a successful trader is the ability to cope with the loss.
So how do you cope with losses incurred? How it affects you and your trading activity?
To help cope with the loss, we suggest you consider the main stages.
How to reduce losses in the forex market?
This is the main stage. It decides how events will unfold, and whether you have to use the rest of the steps. There are three main provisions that can help reduce the loss and cope with losses.
Try to reduce the number of losses. Talking about reducing the amount of loss, it is not about the amount of loss (since it is impossible to return the lost ), and how to avoid them in most transactions. To do this, you should always remember self-discipline, focus on basic forex strategy. Try to minimize the losing trades. Typically, it refers to strategies that arise in the course of trade, not planned in advance. Them you may well be avoided. If discipline is lame and you follow your chosen strategy, the loss will be part of trading activity, just a bad bargain, and not a disaster. Losses resulting from transactions nonconforming your main strategy, joyless threatening consequences. Avoid them!
Try to reduce the number of damages. Here we are talking about risk management. How much ever you are balanced and calm, large losses are always accompanied by emotional manifestations, and as a consequence affect yourself and your behaviour in the trade. And very often this influence turns against you. Do not increase the size of the lot after the failed transaction is carried out! You must clearly understand that the loss – it’s just part of trading activity, not be blocked can not.
Making a deal, you should be in a calm and balanced state.
Reaction to loss.
Full winners are able to play. Comes a point when you realize – have to lose. Deal with it seriously. Human nature hates to lose, everything is used for the sake of ego, evince emotions. It still just tells us that the reduction of losses – an important point. Accept the fact of the loss hard, especially when you have previously experienced such. Excellent was used in these situations to have a strategy that helps you maintain poise under pressure emotions. Most of the pressure of negative emotions do not complete the transaction, throwing trade. Under the influence of anger can be completely lost control. You must take control of their emotions, making the transaction. And do not forget about self-discipline. One of the great ways to deal with these negative emotions and to control them is considered smooth and preservation of proper breathing. Breathe deep, long-lasting, do not let emotions participate breath. Breathe in slowly and slowly exhale, monitor the whole process. This will help relieve stress and keep calm. Ancient Indians to keep quiet, joined fingers of both hands, which is also considered to be an effective method.
Sanity need in any situation. No need to ask yourself why the loss occurred, to convince yourself that it should not be, just ask yourself: How in this situation would have done a successful trader? Asking yourself the right questions, the answers will also appear correct. So you follow the right direction.
Recovery from loss.
Influenced by a stressful situation, it is important to have at your disposal a strategy that will return to normal emotional state. Complete trade and draw conclusions. But how to do it?
To begin with, let your emotional state assessment. Better to do it on a scale of 10 points.
How many points do you award yourself?
Next, you need to determine the cause of the loss that occurred. This can be a bad trade or a losing trade. How to avoid this in the future? Give an analysis of reasons, which resulted in losses. It is important to further trade avoid the same mistakes, thereby reducing the likelihood of subsequent failed transactions. Remove this event from the lesson.
Be sure to take charge of your emotions. Losses have such importance, what are you willing to give them. Hold a losing trade – it does not mean that you can write in the category of losers. Fully cope with the loss – a question of time. Most often lack even a single day, to pay off all the negative emotions and the next morning, fully mastered them, you want to do trading and feel likely prospects.
Do not forget about the discipline. Stability in emotions, intellect and willingness strategic mood, following a plan – and you are ready for further action.
In conclusion, I want to say: If you want the failure to eventually proved successful, remember the rules listed below.
- Reduce the number of losses, go away, if you see a bad deal. Reduce the number of losses that have the ability to reduce, not bargaining, where advance visible loss. You are free to monitor the price of the lot and predict the outcome.
- Try to learn to think in such a way that when a loss is still a positive look at trading.
- Do not forget about the correct response to the loss. Emotional state to take control, attention is focused on the breath – this will give the opportunity to correct behaviour.
- Recovered after the loss is very important. Assess the situation, take lessons, analyze their condition and proceed again to trading.
Conclusion:
The forex market is the most interesting market in the world. Around about a daily 6 trillion $ volume is traded in the currency market. You can be a successful trader in the forex market and mitigate the losses by following the above-mentioned strategies. Broker plays a vital role in trading. Therefore choosing the right broker is crucial. TradeATF is the leading online broker that offers exceptional trading services. Most importantly the broker is the safest trading platform.
