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Trade
How to treat losses
"And be firm in fortune and misfortune, which, in fact, one price" - back in 1910, wrote the English poet Rudyard Kipling in his verse ode to Victorian stoicism called "If". These words are inscribed over the entrance to the all England club lawn tennis and croquet designed for the players. These lines – the last thing you see tennis players who have to fight for the title of champion of the Wimbledon tournament. Forex traders also would not hurt to stick on their monitors stickers with this wise saying.
After all, if You are a Forex trader, then the loss to You is an integral part of the process. The failed transaction will be more than offset by the winnings, otherwise You will not be able to remain a successful trader. But how do You deal with subsequent one-by-one failure (when it finally happens) and defines Your experience as a trader. When one failure is followed by another, You don't have to fall into despair and apathy. No binge eating, no more late-night binges! It is impossible to avoid the game and hope that these losses "resolve" themselves.It is in these moments You really need to remember the aforementioned words of Kipling.
What reciprocal steps should the Forex trader in the face of such a protracted series of trade failures? There are two aspects to focus Your trading system and Your own reaction to the period of defeats.
Start with the system. If You are trading without a clear strategy, it will simply be impossible to single out any specific operation and determine what has gone wrong. If You need to adjust your system, it is best to start with paper trading or use of software that allows you to test the so-called "historical" data, i.e. charts for time frames . It will not be able to replace You the real Forex trade, but will contribute to the development of Your analytical skills and trading methodologies.
Most likely, You already have your own trading system. So, it's time to look under the hood and check all of its components, in other words, to carry out "maintenance". Determine the quality of received data. It might be possible to speed up access to market quotes and to update the software? If everything is in order, and Your trade as before happen to a disastrous series of trades, then you ought to look for indigenous disadvantages of Your trading system.
After You make all the necessary adjustments, you should arrange a self-check of your own emotions in the real world. How have You been affected by the event You have a downturn? I would hope that You are still optimistic and will take future losses as a necessary attribute of a process of active trade.
Again, review set ourselves as the goal of the trader. If they are realistic, they must take into account possible losses. If the losses are very large, You may need to diversify their investments or to sell less risky assets. Nobody likes to lose, but to become a trader you need to learn how to overcome setbacks. Only when You can carefully and cautiously to treat their triumphs and failures, only then You will feel that I found my "fulcrum" as a trader.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 297
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