Are You Really in A Losing Streak? How to Deal with Losses!!! |
Posted: January 28, 2019 |
Each week you might be asked how to get out of a losing streak. This is an important question that needs to be resolved really because many people are related to regular reductions, dramas, and decreasing mental problems. It is very important to know how to work through that period.
If you are honoring 100% of your trading rules and have done everything right during the process, then there is a real losing streak is only a losing streak.
On the other hand, if you break your rules (probably you do not even have a rule!!) And you made mistakes, you just did bad trade. A loss then results you deserve. With those two sentences alone, you can already fully evaluate and understand your losses in the new light.
Loss, thus, is not only harm and our damage should be properly classified.
There is a big difference between "losing the right way" and "dumb losses":
Dumb Losses: • Adding to a loser • Breaking rules • Taking too much risk • Widening a stop loss • Moving a stop to break-even too soon
Good Losses: • Following the rules • Setting a stop • Sizing correctly • Taking the loss • Moving on
It nicely shows how to separate yourself from the results and to understand the quality of your trading like a professional. Now, let's see why looking at your loss is so important. A trader who only stays at the surface level and does not know how to differentiate between a valid losing streak, just doing bad trading.
When a trader does not know about this concept, he will mistakenly believe that his trading method "does not work" and he will have to find something else. They do not understand when they enter the harmful cycle at the end of jumping from the system and why they fail. Premium Forex course of ForexTradingForYou is the Perfect solutions for the forex traders.
If you want to make some changes in trading, you cannot expect continuity profit making in your trade. Avoid rules, jump in and out of the trade, always change your risk and jump around the timeframe.
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