How to control ourself when we lose money?

Discussion in 'Risk Management' started by Volfixtrader, Jul 21, 2020.

  1. Wolfe_tr

    Wolfe_tr

    Having a plan in place helps a lot in such situations. Losses are a part of trading, one should not get stressed because of those, rather learn for them.
     
    #71     Jan 12, 2021
    Stione likes this.
  2. smallfil

    smallfil

    One big tip. It is the quality of the trades and not the quantity of trades. What good does say 20 bad trades you place instead, of say just 5 focused trades? I had around 7 call option trades I placed like 2 months ago (some trades I placed I month ago). I lost 3 call option trades and was hanging on to 4 trades going to January 2021. The losses were small so, no biggie. Decided to sell 3 of the 4 trades where I had substantial profits 01/08/21. Have one trade left expiring 01/15/21. Slightly, positive now on the remaining call option. It may still end up profitable by a decent amount. Moral of the story, it takes just a few good trades to make it worth your while. Quality trades over quantity trades. Don't spread yourself too thin. Focus on your stockcharts and pick the best setups with possible best returns. Follow the trend always. Before you even get into any trade, you have to make sure risk management and position sizing is taken care of. Then, each trade is equal to the other trades where you do not care which ones turn up hugely profitable or turns into a loss.
     
    #72     Jan 12, 2021
  3. Stione

    Stione

    Agreed, planning does help. Also I guess it is with good practice that one learns to deal with such issues.
     
    #73     Jan 21, 2021
    Wolfe_tr and Laura48 like this.
  4. Laura48

    Laura48

    Correct! Practice teaches a lot. Every trader should give good amount of time to explore and practice here.
     
    #74     Jan 25, 2021
  5. navyelite

    navyelite

    No one wants to suffer a loss of any kind, but the forex market is so volatile that you can’t expect winning every time. To control yourself, you can analyze your decision, have patience and try to understand the reason behind your loss and learn from it in order to avoid more loss in future.
     
    #75     Jan 28, 2021
  6. Dr_Trade

    Dr_Trade

    I would say if you have a way to hedge your real value for money you should focus on that. This will keep your confidence high and let you keep your momentum high for other trades. Trade regularly, this will help you manage your stress when the market is not favourable for your trades.
     
    #76     Jan 28, 2021
  7. Losses are certain in the Forex market as it keeps changing. I would suggest to keep patience and improve your skills so that you could overcome the risks and don't lose money.
     
    #77     Feb 1, 2021
  8. Losses are part of trading life. You can’t make profits everyday. Make a habit of analyzing your bad trades and learn from them. Check what went wrong and refrain from repeating those mistakes. Motivate yourself that you can do better in the next trade.
     
    #78     Feb 6, 2021
  9. socool

    socool

    Now that is the most important thing to do. One who knows where he's going wrong, will be able to rectify the mistakes faster.
     
    #79     Feb 8, 2021
  10. The best thing would be to prepare yourself beforehand of every situation that has high chances of happening.
     
    #80     Feb 12, 2021