It often happens that a trader is faced with many failures, and then quits trading, believing that nothing good will come of it.
However, only the
novice traders act this way. Real traders know that success can be achieved
only when you learn to cope with all, even the most severe failures. This is
the law of success.
So, how are losses
experienced on Forex? Let’s find out.
Stage 1: Denial
This stage is manifested very first. Often, when denied, the trader consoles himself: “Well, it happens, it’s okay. This trade was not so important.” That is, you do not admit your guilt and, therefore, discard the responsibility for errors.
You actually close
your eyes to this little failure and continue to engage in trading, trying not
to worry too much.
Stage 2: Rationalism
After you have calmed yourself a couple of times, you begin to analyze, think through your strategy, and look in it for what specifically led you to failure.
You understand that the approach seems good, but it turned out to be not as profitable as you thought. You seem to have done everything as it should, but there is a loss and this indicates that you were mistaken somewhere.
You continue to
analyze your strategy, trying to understand where the miscalculation was.
Stage 3: Depression
After a long, but alas, unsuccessful search, you begin the most dangerous stage – depression. It is like an endless maze without a way out. You reviewed your strategy, analyzed it, but cannot find where you made a mistake. Your characteristic calm has disappeared; you cannot sleep; you have no appetite.
The realization that a mistake has crept into your seemingly impeccable strategy does not give you peace. And you accept defeat and begin to be sad, distracted by other things.
The best solution is
to grieve a day or two and return to conquering the peaks of the forex market.
The main thing is to distract yourself, not allow yourself to let go into the
depths of depression for a long time; otherwise, it will negatively affect not
only your trading but also your general psychological state.
Stage 4: Acceptance
It would seem that it can be more dangerous than depression, that is poisoning your life. Oddly enough, stage four acceptance poses an even greater threat to successful trading.
The thought stuck in
your mind that you are not able to change the result. You have come to terms
with the fact that trading is not your strong suit; it is time to do something
else.
Conclusion
There are two ways to accept defeat. The first way is to assure yourself that there are many mistakes and can’t do anything, which means you need to stop this trade right now.
The second option is to continue trading. This option is for strong people because it is not so easy to suffer all setbacks and tackle the same thing again and again until the result appears. If you ask us, the second option is more suitable. We all make mistakes. The lesson is to learn from these mistakes and not get too much distracted.
New to Forex trading? Don’t miss these beginner guides from FXCC.
– Learn Forex Trading step by step
– How to read Forex charts
– What is spread in Forex Trading?
– What is a Pip in Forex?
