It really depends on your personality. If you think you might react emotionally, than take some time off. Anyway, don’t look at it as failure. A success in trading should be measured by doing the right thing, apply a proper strategy and stick to it with self discipline. As long as you do it you should still feel good about it as losses are just a part of the statistics
Pause trading for a week maybe?. and start over again, gather new ideas that can help you bounce back on what you’ve lose. make sure now you become wiser and better. forget on whats loss and create new effective plans to use for better trading.
I too think it’s best to pause trading for a little while, analize what you did wrong, learn from it, then go back to the trading platform with fresh eyes and a fresh mind.
after loss better pause for a while and think what was wrong, but accept it and refresh your minds and think new fresh ideas that can help you to get back on what you’ve loss and next time never repeat it again for you to gain more profit and be successful in Forex trading.
Yeah you’re right.
You see articles about dealing with losses rarely because:
- It doesn’t generate much traffic (assuming there’s any)
- Brokers and product vendors don’t want to promote it because the best way to get over a loss is stop trading for a while. It ruins their businesses.
Losses are important because we learn from them. any mistake is a possibility to look at your mistakes and change your strategy and your attitude for something better and in the end become a better trader !
It is not a very pleasant experience to have a loss, especially a big one but once it happens, you just need to let go. Losses are often part of the trading journey but they can teach us and show us our weakness. By experiencing a loss the trader can take a step back and see the bigger picture - what exactly happened, why it happened, what did he/she do wrong, etc. Just accept these losses as an opportunity to learn from the mistakes and improve your trading plan or strategy.
Exactly what i’ll do! Most importantly, I try to fighure out why there was a loss. After identifying the root cause, I move to profer a solution.
That’s the best thing one can do. Find out what your mistake was, why you let it happen and endeavour to make sure it doesn’t happen again, or at least it happens as little as possible.
More to that, ADMITTING the reason for one’s failure is a major key to being successful. Sadly, most traders do not admit they were wrong and never endeavour to find out why they lose only to repeat the same mistake over and over again.
Trading is a journey, depending on where you are in that journey should depend how you deal with losses.
Additionally this should be laid out in your trading plan.
If you’re just starting out, losses are going to be the norm, sometimes you get lucky and you keep winning. Trying to figure out why you’re winning or losing money here is not going to be very helpful. You’re still developing market knowledge, that will be the primary reason for winning or losing. Not knowing where to be wary can cause you to win big! Careful.
Once you’re out of the newbie stage and can start following your own trading system then you can start analyzing the trades. You now have a framework to work with, this will be the baseline for figuring out what went wrong/right.
If your strategy entails placing many trades in a day, it can be counterproductive and even get you out of the zone to start analyzing trades right away. Rather leave it for later, if you’re on a losing streak it’s best to stop trading and then analyze when you can think clearly. Make sure to do it whilst the trade is still fresh in memory, the market often looks different after the fact.
If you trade very infrequently then it makes sense to analyze it as soon as you can because you’re not getting in the way of placing the next trade.