Regaining strength after losing big trades
Life is very complicated. No matter how hard we try, we always face a series of complicated issues which makes our lives tough. Those who have accepted the fact that problems are nothing but a part of this world can easily become successful. This same concept is used by the top traders in Singapore. They don’t take the losses personality. They consider this the cost of becoming an active participant in the Forex market. Since they have zero emotional impact, recovering the losses is very easy. For rookies, it is very difficult since they don’t have the strength to trade like a pro after taking a big hit from the market.
Smart investors always use few amazing techniques by which they cope up with the losses. It is not all complicated but the rookies find a way to mess things up. So, how can you learn to accept the loss and regain strength? Read this article and you will find the answer.
Be prepare to lose trades
The first thing that you must consider is that losing trades is unavoidable. If you intend to avoid the losing trades, there is no way you can do that. To ensure the safety of your capital, you must stick the core concept of trading and take the trades with low risk. This will help you to remain prepared for the loss. If you don’t get frustrated over the loss, you can take the data from the higher chart without having any emotional attachment. This will allow you to take trades like a pro.
Scale down the lot size
Every one increases the lot size after losing a trade. To them, it is the only way to recover the loss. If you explore the premium articles at Saxo, you will learn many new things about risk management. It will help you to tackle the losing trades. Scalping down the lot is the only effective way by which you can protect your capital. Though it will take some time to recover the losses by doing so you can significantly improve your trading skills and make some serious changes to your lifestyle.
Analyze the risk to reward ratio
Analyzing the risk to reward ratio is a critical part of your recovery factor. Having a trade with 1:2 risk to reward ratio is not good enough. Typically, the professional traders use 1:4+ risk to reward ratio so that one winning trade can easily cover up 4 losses. Though it requires strong analytical skills, you can learn everything in the demo account. Instead of counter trading the trend, find the retracement level to ride the trend. It will help you to secure big gains at any moment.
Analyze the global economic news
Analyzing the global economic news gives you the ultimate comfort in trading. After losing a big trade, you may think the market is manipulated. But in reality, no one can manipulate the market. It is the trader who breaks the rules and loses a big sum of money. By analyzing the news you will know the key reason for which you are losing the trades. Though it will be a little complicated at the initial stage once you learn to deal with the global economic news, you can make some serious profit even after the losing trades.
Get ready to find the faults
Do you know the reason why you are losing trades? If not you don’t know the weakness in your trading model. It is important to fix the bugs in the trading system regularly. Does this mean we can never have a perfect trading model? The answer is yes. Since the market is changing its nature over time, you have to change your trading method regularly. This will boost your confidence and skills to a great extent.