It happens; usually I do close my trading chart, if I see the market is too volatile and against my trading setups!
Instead of getting depressed into such situation it’s better to firstly look for reason of losses then look for solutions and then come back with a solid trading plan.
Take a quick break. Consider, analyse, and try to figure out where you went wrong. It will assist you in efficiently recognising your mistakes and avoiding repeating them in the future.
The key is to understand the market and not to be too irritated by it that it takes the life out of your trading, and you cannot trade. Even if the trading goes the ‘mess way’, it is just a lesson to be learned and nothing else. Complaining never works, ever.
Yes! I really feel taking breaks allows us to understand our feelings and spare time to think about what should be done to make the trades better.
It’s all fine, and everything will go alright when we are not too emotional about trading losses. Losses are a part of the game, and if we suffer a bad trading week, it does not mean that we let ourselves feel down or depressed. We can take some time to focus on something else, and then we can have a look at the events that made our trading go wrong. We can always correct our mistakes, but if we remain emotional, we can never do that.
If a week or a day turns out to be unprofitable, then it is better to stop trading and work on mistakes to understand what exactly influenced the bad trading: a trading strategy that does not work well enough that should be improved, or the actions of the trader himself such as haste, greed, the ability to wait or excitement. Therefore, only when you understand the reasons for your mistakes, only then should you continue trading without repeating them again.
I usually take a break from trading for a week on demo unless a clear high probability opportunity presents itself. This gives me time to reassess my trades and identify any mistakes without succumbing to revenge trading.
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