Handling Successive Loss Trading
In trading, every trader, be it beginners or professionals, will experience losses or losses in trading. Loss cannot be left alone, traders must be able to minimize losses or losses in trading so that they do not become large or consecutive losses. What is a losing streak?
Meaning of Consecutive Loss
Oftentimes traders focus on results, but the process is often neglected because of amazing results or terrible results. Many traders often hold floating, and tend to wait until the price actually reverses so that they will make a profit. When the floating loss is already high, the trader is even reluctant to close the position and chooses to wait again and again. A decision that will not only make the trader lose even greater. This type of loss is categorized as a type of loss due to the indiscipline and carelessness of the trader himself. Of course this is not included in the trader's planning in building good performance with clear rules, where discipline follows the trader's rules.
How to Continue Trading
If a trader realizes that there are no rules and no structured approach, the trader needs to establish them. Trading is not just looking for entries and trying out new indicators. Traders have to create rules that traders can follow if they want to trade like a pro. The rules will ensure that the trader's transactions have more consistency. This is due to disciplined trading, so the trader can interpret the trader's results and find out where the problem is. If a trader does not have a detailed strategy, all traders' trades will look different and analyzing a trader's results will not provide meaningful information or can be called invalid.
If a trader wants consistent results, start by following the rules of trading consistently first. Most traders do it the opposite way and wonder why the results are not to the trader's liking.
Assessing Successive Loss Correctly
Assuming a trader follows the rules and a trader's trading system in a disciplined manner and the trader continues to experience losing streaks, then if you have to put it in a different perspective and look at it in a larger context to keep the trader from panicking and staying calm.
Learn from Defeat
Often losses can provide great insight into one's trading approach. Often, traders do not see the problem ahead because the trader's focus is sucked in their own emotions. Traders feel right and stubborn which makes traders fall deep so that high pessimism appears.
Raising awareness is a big step, preventing emotional mistakes and creating clear rules with optimally pursued discipline will help traders get past unproductive emotions.
Comments
Post a Comment