Losing happens unfortunately, quite often, in terms of trading forex, whatever your level of experience. The foreign exchange market is what we call a zero-sum game. Someone is, indeed, necessarily on the other side of your trade, then losing is just a matter of time.
If it is an integral part of trading, no one likes to lose, be it beginners as well as professionals. To help you better manage these moments of doubt, here are the 4 steps by which each pass…as in the case of a bereavement !
Step 1 : denial
Often when one loses, one begins by being in denial. We refuse to believe that one is the cause of this disappointment and that his idea of trading was probably not good, it is looking for an apology, etc, there is nothing wrong with it at first because it is a way to relieve your ego, to survive the loss and go forward.
Step 2 : Rationalization
Once the denial phase is past, generally, we begin to rationalise a bit and to focus on the configurations of trading. It has a tendency to quote all the relevant elements and it is, naturally, besides what has sin. In the end it is still convinced that he has not committed an error.
Step 3 : Depression
At this stage, you have already looked at all the external reasons possible for your loss and you begin to turn inward and consider that the loss falls within necessarily of your action. Although it is reasonable to take the responsibility of its loss, be judged too harshly can cause harm to his forex career. All the traders have already known this kind of feeling. If some continue to believe in it, others just give up this activity.
Step 4 : Acceptance
In this step, you begin to realize that it is unhealthy to place too much blame if things go wrong. You have accepted that the loss was partly your fault but also that the forex market can sometimes just be indomitable.
When you get to this step, you agree that you can make mistakes, but you can not unfortunately control everything on the foreign exchange market.
In summary, instead of simply denying your loss, you can use to evolve, you adapt and you grow.
Updated on Monday, 10 July 2017 08:26