Learn how to lose money on Forex properlyJohannes Röll 11 / April / 20 Visitors: 13
Learn how to lose money on Forex properly
Forex is not a bag of money in which you can always put your hand down and get the right amount. Loss is one of the fundamental factors of trade in the market. And you 're not going anywhere. The main difference between a rookie trader and a professional is that the second can cope with moments of failure. This skill is necessary to achieve success on Forex.
We reduce losses
In total there are three points with which you can reduce your losses on Forex and more easily cope with them.
Follow the chosen trading strategy. A lot of losses on Forex occur because people, at the moment of sharp trend change, led by greed, move away from their system and enter the market contrary to its rules.
Operate risks. Often, a more or less serious loss causes a huge number of negative emotions in a person, which are difficult to control. Because of this, the quality of trade begins to suffer greatly. Sometimes it is terrible to "show the market who is the owner in the house." Such emotions lead to even greater losses in the end.
The first thing that should take your head at the moment of losing money on Forex is why it happened. Did you follow all the rules of the trading system? After you need to understand your condition. If you understand that loss-making deals affect you too much and you cannot cope with it, consider whether to continue trading. Or learn to control yourself. Understand that losses are the part of Forex that everyone meets, even the most successful trader.
We work on emotions
Forex needs to be able to lose. Without this you will not be able to achieve real success in it and to stay in this sphere for a long time.
Of course, it is very difficult to react calmly to losses. Human nature, so much loving to win, simply cannot help but react to situations where her confidence in her right is hurt.
In order to simplify this task for yourself - find for yourself several strategies aimed at helping you to keep control of yourself and the process of trade when losses have already occurred.
A proven effective method of calming is to control your breathing. I 'm sure you noticed that during stress breathing becomes intermittent and frequent. Therefore, in a stressful situation, it is necessary to concentrate and breathe purposefully slower and deeper. It is necessary to inhale slowly, "in all lungs," and exhale for a long time. This method is aimed at the fact that you seem to be cheating on your body. When he is determined to panic - you make him believe that everything is good and there is no reason to break down.
Thanks to this method you will be able to remain calm and will not be happy, continuing to observe the rules of entry/exit of your trading strategy.
Ask ourselves the right questions
When there was a loss-making deal, watch not only your emotions, but the thoughts that cause them. Instead of focusing on the question of why the market does not like you so much - analyze your actions. Did you all do what the strategy requires? Think about how a successful trader would behave in this situation.
Recovering from a loss-making deal
First rate from one to ten the quality of your trade. At what level are you now?
Why are loss-making deals happening? What can you do to avoid them in the future?
As we said above - learn to calm down and control your emotions.
If you feel that you have not yet fully "moved away" from the loss-making deal - do not rush into the market in this condition. First clean your head, work on your breath, and only then start acting.
A truly successful trader is not one who does not have a single loss-making deal (although it cannot be), but one who can cope with his emotions when they happen.
Johannes Röll was born 1978 in Brilon,Germany. Graduated RWTH Aachen University. Over the past ten years he worked as Head of the plastic card team, where he was mainly responsible for the development of the distribution, Head of sales Department and Financial Analyst,where he got experience in planning and support sales figures for branches. For the present he works as freelancer