Everything that has something to do with money can become a source of stress for most people. Money is something that is difficult to earn but so easy to lose, and no matter how many times a person loses money, the reaction is still the same. After incurring a financial loss, people tend to get depressed, lose focus or quit whatever they’re doing altogether.
The same is true for people in the Forex Trading market. Most people quit because they can’t handle the frustration of losing money. Not only does it affect your financial status, but your psychological being as well. A loss makes people feel like they’re failures for losing something so valuable. It is a wonder then why some people persevere despite incurring loss after loss during their years in the trade. What is their secret?
• Be objective about your loss – Most experts agree that since you entered your transactions in a business-like manner, you must also deal with loss in the same way – as unattached as possible. If you can, look at things from a third person’s point of view. Forget that you are the person who incurred a loss and pretend it’s someone else. Then from that point of view, try to analyze what the person did wrong and what options could have been better at that situation. This way, you can analyze your mistakes and not indulge in self-pity and self-blame.
• Remember your gains – Even in your darkest hour, you must always remember that things are not always like this. You are not a failure; you’re just someone who is capable of making both good and bad decisions. Try to remember successful transactions in the past and try to replicate them. Concentrate on emulating and repeating your successes, and not just avoiding making another mistake.
• Read up on more Forex strategies – When you incur a loss, it just simply means there is so much you have yet to learn about the market. Take a break from trading to read up on strategies, tips and different trading methods. Using your trader’s account, observe the market and make predictions without actually trading; this can help get your mind back on track and make you feel comfortable with the thought of trading again.
Remember, bumps on the road are a part of the journey to success. You only truly fail if you let these get to you and prevent you from achieving your goals.