How to deal with trading losses?
Unfortunately, trading is very stressful task which requires a lot of nerves and strength to endure. But what is even harder to deal with is when the trade falls through and money is lost. That happens with every trader no matter the experience. And after the loss came there are a lot of frustration and anger that somehow must be dealt with. So, how to deal with loss and set the vision on the positive side?
The first thing is to acknowledge, that trading process is similar to life itself in this regard. Ups and downs are the things which we simply have to deal with. It is very important not to fix one’s attention on the fact of loss. The sooner it is let go, the sooner the trader can go back to the normal process of working with the assets. There are actually several steps of dealing with the losses:
1) Accepting the loss as the part of trading – just the thing that was discussed above.
2) Losing temper is a big no. Of course, when the losses are high, and money are disappearing in the big quantities it is hard to remain calm and quiet. But losing temper will not help one bring back lost assets. Plus, with constant trading nerving so much will cause permanent damage to health.
3) Betting large amounts can bring to huge losses, so it is better to keep the bets and losses small.
And, of course, learning everything about the field will not save from the losses but definitely will not hurt.
- by Anna K.