4 Trading Losing Streak Conquerers
In the course of your forex trading career, you’ll learn that it is pretty tough to enjoy a string of consecutive wins. Losses are inevitable and occasionally, you will suffer setbacks. When you are in the midst of a downhill spiral, it may be challenging to break free of the negative frame of mind or pessimism that can accompany your present situation.
As a novice forex trader, it’s ideal to be as well-prepared for trading fundamentals as soon as possible before putting your money on the line with a live account. However even if you acknowledge the basics and adhere to a well-thought-out approach, taking the edge of small price moves can be a lucrative game if played skillfully. Still, it can be a risky endeavour for those who don’t.
A losing run may be a turning point for novice and seasoned traders alike. Failure to do so will almost certainly result in financial disaster or a lengthy period of futile effort to get back on track. On the other hand, you can bounce back fast after a losing streak if you manage the situation wisely.
One of the most lucrative trading strategies requires foresight, a realistic awareness of probability and the willingness to accept trading losing streaks as part of the “game”.
For those who have suffered numerous setbacks, don’t fret—it’s really not a big deal.
Take a Step Back
Even while you’ll likely need to continue trading for a more prolonged period in order to meet your objectives, this does not preclude you from taking a leave of absence if you feel the need to do so.
After a string of losses, it’s important to remember that it’s at this point that the forex trading tactics you implemented at the outset of your journey will honestly pay off. Consecutive losses will get identified by your tactics, which is just one of many factors.It’s wise to maintain an online trading journal to keep track of your performance.
Keep note of your trades’ profits and losses, as well as any patterns that emerge from your trading activity. Then, when making decisions, always have your tactics at the forefront of your mind and follow your instincts to discern when a break is necessary.
Detach your Emotions from the Equation
As with any ilk of trade, one can’t deny the prospect for emotions to become involved. You’ve worked hard for this money, so, logically, you’d get anxious and annoyed if you started suffering a string of losses. However your future success depends on your ability to put aside your feelings and focus only on the facts.
If you don’t persevere amidst a losing streak and alter your tactics, you won’t be capable of achieving any long-term success.
Use the mistakes and successes of previous traders as a guide for yourself. While it’s fantastic to learn from the experiences of others, it’s important to remember that no two people’s circumstances are precisely the same, so don’t let other people’s opinions about what you should do affect your own choices too much. In some cases, your situation may be somewhat distinct.
Regain Mental Clarity; Don’t Mess with your Head
Now that your emotions are under control, it’s time to get your life back on track by redirecting your thoughts. When your confidence shatters, it’s natural to reflect on the rational approach and attitude you took when you initially embarked on your trip.
Losing and losing streaks are pretty much inevitable in the trading world. It would be best if you weren’t continuously running away and taking a vacation whenever you have a handful of losses — this will also be counterproductive to your approach.
Eventually, returning to fundamentals and clearing your thoughts of the losses you’ve suffered will offer you a, much better outlook for future trading rather than wallowing in despair. So take the initiative to revisit your journals and reacquaint yourself with your tactics to obtain some much-needed clarification about what lies ahead on your journey.
Be Conscious of the Overall Picture in Mind
Keep your long-term objectives in mind while you work your way back to profitability after a string of losses and you’ll be on your way again in no time. Always think, What’s the purpose of this? What are your expectations from this experience?
Following the first three phases will put you in a considerably better position to concentrate on your own particular goals and objectives. Don’t forget that you can always revert to demo trading until you’re ready to continue live trading. Your confidence will soar after you’ve made the decision to trade with real money and have had a few straight victories to back up your decision.
However, the process of rebounding from a bad run may be demanding, requiring you to relearn how to make judgments without being swayed by emotions.
The Bottom Line
When you evaluate hundreds or even thousands of trades, you may come across a seemingly random streak of wins or losses, all of which are well within the reasonable bounds of the game we play. But unfortunately, it’s hard to keep this perspective while you’re on a losing streak in the markets.
Instead of continuing to trade without stopping, one viable option is to grab a break. Indulge your mind in something different for a few days so that you can recharge your batteries (briefly discussed above). Meanwhile, check to see whether your losing run could be the consequence of you straying from your strategy and taking a series of unplanned trades.
There are times when trading may be erratic and the winning and losing streaks tend to be short. However, if your losing streaks get longer than usual, you’re either not sticking to your strategy or are not flexible enough to adapt it.
