One of the few aspects of forex trading, where you can experience some certainty, is that you will have losses.Absolutely right.Losses are an integral part of trade, and one of the key differences between successful traders from the rest is not in how much they have losses, and how they cope with these losses.To be able to play is the key to the long term to be a winner.
How do you currently deal with their losses in Trading?How do they affect you?What is the impact on your effectiveness and results of trade they have?
Let's look at three steps that can help you better cope with their losses in trading on Forex.
Step 1: Cut losses
first step to effectively combat losses is a "loss reduction".Reduction of losses is key, because if you correctly perceive this step, then in the future you will have to use less of the 2nd and 3rd steps.The first step can be seen as a kind of "disease prevention".
There are three aspects that will help you reduce the losses in trading and will have an impact o
1. Reduce the amount of its losses
talking about reducing the amount of the loss, I do not mean to try to reduce the loss as such, because it is unreal, I mean to focus on its trading strategy, maintaining trading disciplineand reducing unprofitable transactions, which, for example, occur as a result of trade, which are not part of your strategy, and which, therefore, can be avoided.
losses that occur as a result of orderly trading, - is not nothing but a losing trade, which is part of the trade.The losses also incurred from the opening of transactions that are contrary to your trading strategy, when you "something there seemed" can be seen as a bad trade or anything else that could have been avoided.In short, do not toil foolishness.Follow your forex strategy.
2. Reduce the amount of your loss
Obviously, it all comes down again to risk management.It is important to recognize that the major losses have a significant impact on our emotional state and can often have an impact on our trading behavior is usually not the best way, for example, attempts to "take revenge on the market."In no case do not increase lot size after a losing trade.
3. Reduce the mental and emotional impact that these losses have
your reaction to the loss is a factor of how you got these losses (if you strictly follow its strategy or not), theirvalues, as well as your perception and beliefs about these losses.If you do not like to lose money, and you feel that you should not be losing trades, or to deal with trade, where there may be losing trades, your reaction will be very different from the reaction of the people whose thinking is more realistic and are aware that loss - this is an inevitable component of trade that results are probabilistic and not every bargain is winning.
Are you fully aware of the fact that losses are an integral part of the trade?Do you
fully aware of the fact that any deal does not exclude losses and of probable outcome?
Step 2: Reaction to
ability to play the loss - a key element that will help you become a winner.
This step comes down to how you actually deal with them at the moment when you understand that you may have to take a loss.Resigns himself to the loss is extremely difficult, this is due to factors such as our ego, our desire to win and our human nature to dislike losing and that is why the phase of "loss reduction" is very important.However, even that one step in terms of making losses can still be difficult, especially if we have already been lost or damages.In this regard, it would be useful to have some strategies that might help you to stay calm, focus and discipline of being in the heat of the moment.
Many people stop or removes from trading a feeling of anxiety or anger.Their behaviors are beginning to lead the emotions that they are experiencing at this moment, with the result that they lose control and discipline.The whole point is to be able to manage your emotional state in real time, and to maintain their mental faculties open to trade, as well as to be able to control himself and adhere to strict discipline.
only a quick and easy way to learn how to manage your emotional state - is to learn to control your breathing.The stress usually changes your breath - it becomes ten times more frequent and intermittent - so you need to breathe deeper and longer: it is necessary to carry out a breath slowly, from the diaphragm, and exhale to do more long, slow and controlled (natural relaxation response of the body).This will help you to overcome the stress response and maintain a calm, restraint and, above all, discipline.
I also helped the United palm with the fingers.This is just an ancient Indian technique to calm nerves.
In addition, taking a cognitive dimension, save in situations sound thinking.What thoughts usually visit you at a time when you do a losing trade?"The market always goes against me.""This should not have happened," etc....
It is useless thoughts, because they only increase your stress levels.It is better to ask yourself the following: "What would you imagine a successful trader said in a similar situation?".This can help you to direct your thinking in the right direction, and as a result affect your feelings and lead to more positive behavior.
Another way to manage your thinking - it actually create some affirmations, phrases that you can repeat to yourself when you stay in a situation that may bring you losses and direct their thoughts, feelings and emotions in the right direction, andalso overcome any unconscious and habitual reactions that you could develop yourself.Remember that matter, on which you focus your attention, will depend on your emotional state and discipline.
can be very useful to focus on the phrases that will help you concentrate on your trading process and do the right thing (which is probably not easy) at the right time and for the right reasons;for example: "I'm a winner, because following your trading plan."
Step 3: Recovering losses
useful to have some strategies that can help you stay calm, focus and discipline of being in the heat of the moment.
At the end of your trade summarize their current losses.What do you do?
1. Evaluate your condition.
How do you feel?Evaluate the condition of your trade in total on a 10-point scale, where the number 10 corresponds to the state of your successful trading, and 1 - respectively the opposite end of the scale.Where are you now?
2. Evaluate and analyze the cause of their loss.
What type of loss occurred - losing trade or bad trade?Can we learn from this trade?Can we do anything in the future?
Assess and analyze the causes of losses.What lesson can you learn from this?
3. Monitor your reactions.
There are a number of ways by which you can manage your reactions to loss.
At the cognitive level, you want to give a full report of your thoughts, your perception and the value that you place on your losses.Your losses are so important that you do the same to them and attach.Loss does not mean, for example that you are a loser.You can take a different point of view, looking at things more widely - what can I learn from this?I'm going to feel about this at the end of the day, at the end of the week, at the end of the month, 6 months, a year, 5 years later?
At the behavioral level, you could use the breathing or relaxation technique, take a walk or do some exercise to help you cope with the sense of loss.
Sometimes it's just a matter of time.One of the trading session of the day or can often be enough to help you get rid of some emotions, regain some perspective and be ready to start trading again.
go back again and be ready to start trading forex - intellectually, emotionally and strategically.Think of your trading plan, focus on your breathing, and then proceed.
If you want to learn how to play like a winner, and to develop the skills that will help you improve your chances to become a successful Forex trader in the long run, remember:
• Cuttheir losses : develop the ability to avoid strong reactions to losing trades, by reducing the number of preventable losses and bad deals;by controlling the position and size of the final results of trade;as well as through the development of thinking, which has a more positive view of the losses.
• correctly react to their loss , directing your thoughts and focusing their attention on breath control to create conditions which will enable you to act properly, necessary for orderly trading.
• Learn how to recover from their losses , estimating his fortune, analyzing, controlling their reactions and re-focusing on trade.