What according to you is an effective way to deal with losses when you have a bad week/month ?

Discussion in 'Forex' started by Raheel Shaikh, Aug 30, 2021.

  1. maxinger

    maxinger

    I'd blame myself for the losses.

    Stop trading for half a day.

    Then go and exercise at double the usual duration
    so as to clear my mind.
     
    #11     Aug 30, 2021
    Raheel Shaikh and zghorner like this.
  2. Karin42

    Karin42

    I believe that the best way to deal with your losses is to regard them as an opportunity to learn.
    First of all, you should admit that your trading strategy has some drawbacks which prevent you from making profits. This step is the key one because without admitting the problem, there is no chance that you'll ever correct your mistakes. After admitting it, you've got to start looking for the exact place in your methodology that lacks something. I would advise to forget about real trading and concentrate on finding the weak chain of your strategy. You'd better decompose the decision making process that you've got and see, what causes your losses.
    So, if you have a long streak of losses, you should understand that the problem lies in your strategy and you should change your systematic approach to trading.
     
    #12     Aug 31, 2021
    murray t turtle likes this.

  3. Well said buddy,
    being grateful and humble for the opportunities we have rather than the things we don't is the key to a happy lifestyle.
     
    #13     Aug 31, 2021
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  4. +1 it's a learning opportunity. This is usually when I feel a sudden burst of creativity and motivation to start testing new strategy ideas lol. Often only to find that I am unable to come up with anything better than what I already have, which gives me the confidence to continue trading through the drawdowns. In the off chance that I actually do find something new, then it is very rewarding and I gladly add it to my collection.
     
    Last edited: Aug 31, 2021
    #14     Aug 31, 2021
  5. tiddlywinks

    tiddlywinks


    I agree that is a good post. +1

    For me however, one word clarifies the situation and reorganizes my mindset. That word is...

    NEXT!
     
    #15     Aug 31, 2021
    zghorner likes this.
  6. @Raheel_Shaikh When you accept that losses are inevitable then you naturally get the emotional strength to cope with the losses. It’s very important and at the same time difficult to take responsibility for your loss while blaming it on other factors is comparatively easy. I’ve learnt that only by owning my mistakes truly, i can learn from them. If the loss seems too overwhelming to me I take a short break from it. Try to find out where I fell short and make a better plan. I’ve realized that not balancing the emotions may often lead to revenge trading.
     
    #16     Sep 1, 2021
    Raheel Shaikh likes this.
  7. Take a break + Research and then come back with fresh mind.
     
    #17     Sep 1, 2021
    murray t turtle likes this.
  8. Yes sir absolutely
    balancing emotions is the most valuable lane on the road to consistency.
     
    #18     Sep 1, 2021
    Charts and Arts likes this.
  9. Whenever I encounter a situation where my trades aren't turning out to be profitable for 3 straight days , I switch off my pc for the remaining week. I spend some time out with my friends and family. Work on my strategies, clear my mind and try to have a positive mindset for the upcoming trades. Never get worked up in forex trading. It kills the rhythm.
     
    #19     Sep 2, 2021
    murray t turtle likes this.
  10. algoseek

    algoseek Sponsor

    Here is my two cents: Whatever you do, don't engage in revenge trading.
     
    #20     Sep 2, 2021
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