Hi traders. For those who have experienced this, how do you guys deal with it? What is the best way to get back on track and find the confidence to trade again?
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Hi, I am just waiting until portfolio make new high on equity curve. The worst thing I can do is manually close trades instead EA’s. In the meantime, I am building new strategies. Regards Greg
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If you want to be successful there’s only one way to think about it (losses):
Losses make part of the journey. You just need to learn with them and understand what you can/need to change to be better every day.
Don’t give up. Put some epic music, look at what failed and undertstand what you can work on to become better than last week. If trading was easy, everyone would be doing it.
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Honestly am still dealing with a bad trade and can’t seem to get over it, it’s been crazy so far with hopes that the market will pump. I am trying not to think about it, but every now and then I look at the market and get really angry. My advise is to stay off the market for a while to get your mind right.
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I take a short break. During this time I assess my trades and look into what I did wrong. When I don’t take a short break it just leads to revenge trading.
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I think almost every trader has a bad week when market is ranging, as It happened last week.
That’s why it’s very important to have a daily limit.
Maybe you’ve taken 3 weeks to Make some profit… Make sure It takes at least 3 weeks to loose It. Dont blow everything on a bad week.
Your strategy all of a sudden stops working… just dont insist… market conditions may have changed, so in stead if discarding the strategy… slow down… wait for some trading sessions and try again.
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When there is a bad trading week, I usually take a break and spend time with my family. During the break I don’t think about the loss, instead I give time thinking where I went wrong. It’s totally fine to face losses as a forex trader. What’s important is to learn from them and remain patient.
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This might not be helpful advice if you’ve already closed your losing trades, but I find that (often from looking retrospectively but more now during the actual losing streak) that my trades are often at their worst on the point of turning and if you can place a recovery trade (different to a revenge trade in my view) in the same direction as your loss but with a revised entry point, then you might well end up with a win.
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That a good question regarding success/failure ,just carry on with same intent .I had my worst week a fortnight ago for about 8.months.I traded the GBP/EUR the day Boris resigned I already was short a few days before,after reading the TA .Though foolish me I held on longer than usual thinking they be some sort of reversal ,so I could close the trade at a lower price.The pound had two consecutive strong Bull days.I eventually closed after having a wider than usual stop.The point is when I first starting trading my psychology would have been different and i would have tried to get my money back.I just kept"plodding"away last week and had a good week and got most of the week before losses back.Trading you get the odd day where you get an exceptional return that why I don’t do TPs
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Perhaps go back to demo, carry on trading with nothing at risk until you get your mojo back. If your strategy statistically works and it is just your psychology that is impacting it then get back on the horse, but risk free.
go back to the last strategy and start over ,there’s no time to feel sad and depress.
Nothing more frustrating than closing a losing trade and like magic price shoots the opposite direction within minutes. I can’t count how many times I’ve done that.
I’ve used that method and done well, but if you get it wrong then your losses are much bigger
Very true. You’ve got to be prepared to make the occasional huge loss as the price for more wins.
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I saw a friend do this.
He has a daily loss limit. Once its hit he closes the trading session for the day and starts afresh for the next day.
If the loosing streak(5-10% drawdown) goes on for a period. He takes a few weeks(1 or 2) break because that shows the environment isn’t favorable to his trading strategy.
When he comes back he reduces risk by half and trades at 0.5R until he reaches account previous high before loosing streak.
Seems to work well.
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Sorry to say this but suck it up and get back on the horse, if you have a trading plan go back to it and review your trades, to give you my example I’ve just had a bad week for me down 300 pips, why decided to trade on some indices and commodities.
Also and this was my lesson decided to try and recuperate some losses on one particular trade, my experience and I’ve traded for nearly 4 years deserted me, chasing a loss instead cutting lose.
Back to the grind head down and move forward.
Maybe take a couple of days out and read Tom Hougaad’s new book -
’Best Loser Wins’ - Tom Hougaard
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Correct, losses improve your experience in the market
Maybe take a break to reset your mental or review your losses and wait for better market conditions to continue trading. Each person deal with it in their own way but it’s best to avoid revenge trade or emotional trading cause that will only lead to more losses.
I take a break and relax my mind! Moving forward comprehend on what when wrong and then work on it.
demo trade fearlessly no matter the results. it will organically click if you let it