The loss in the trade should not let you down but ignorance to miscalculation would definitely put you down. There is always a saying that defeats help in winning the war; so by this adage you should not be demoralized by the loss and improve your strategy. The shortcomings and all the minor deficiencies in the technique should be pressed out.
Sometimes forgetting the loss is the only option we have left as a trader, because no matter how technically we analyse the market, we cannot confirm that in the next five minutes the same scenario plays out as we predicted. Things are not in our hand and we lose money.
The phenomena of revenge trading is a very common practice done by the new traders. Infact during my initial days without thinking I started to do leverage trading to recover the loss incurred. I was using Fxview and XTB at that time to invest in multiple markets. Literally at that moment I was close to being bankrupt but eventually I got back on track and left trading. I did demo trading, concentrated on my primary income, learned about the various aspects of trading, then came back to the real world. Actually I can’t understand why people bring their ego in the trades, risking all of the money they have in their accounts.
You should focus on more important things than this. Losing is an important part of trading just like making any profit is. So don’t worry, you can always improve your trading style by experimenting with some strategies. Good luck.
Ego trading is one big killer for the newcomers in the trading field. Trading is just like a job where we have to learn about our field, get into the field and then if things go south, learn again about our field. At dire circumstances only the markets make unexpected swings and we cannot ignore this fact, but don’t shrug that it is not my mistake.
But we have to take necessary action to reduce the occurrence of losses in future. The end goal is to achieve consistency in profits and for that you have to find ways to reduce losses, Either re-work on your strategy or see what else needs to be done.
Exactly, if you have faced loss then you will also gain profit. Losses help learning through mistakes.
Rather than ignoring the losses, the best thing is to take a note and find the way on how you can turn that over for profit the next time via reworking on your strategies. Every trades matter.
Winning and losing are parts of Forex trading. Every trader goes through trading loss and it does not stop them. According to me, every loss in forex is the stepping stone to success only if you find and analyze where you made a mistake that led you to the loss. You can ignore your loss only if your win-rate is above 50%, if not, try to adopt new trading strategies Your win-rate is how many trades you win, expressed as a percentage. For example, if you win 80 trades out of 100, your win-rate is 80%. A day trader should work to maintain a win-rate above 50%.
Agreed, losses should never be ignored. One should learn through them and find ways to avoid them further.