Losing is inevitable in trading, so you might as well learn how to deal with losses.
In forex trading (as in life in general), there will always be ups and downs. Most traders, especially those who are new to the game, can only stay motivated while winning and tend to feel defeated when the losses pile up.
Working with the mindset that losing is unacceptable can be unhelpful and even destructive.
The fact of the matter is that losing in trading is important, if not essential. If you’re not ready to accept that losses DO HAPPEN, it will be IMPOSSIBLE to survive in the forex world.
If you’re having a hard time coping with the idea of “acceptable losses,” here’s one technique you can practice to help you overcome your fear of losing: think of losing as a very, very close friend who is always there for you.
Your closest friend is one who will tell you the absolute truth. They don’t beat around the bush to avoid hurting your feelings.
He or she may criticize you or point out something you did wrong, but in the end, you know your friend means well and is just looking after your well-being.
Of course, just like you would with your real-world friends, you should listen carefully to your losses so that you can learn and improve your trading performance.
The best traders know they can lose 100 trades in a month and shake it off because they realize that they can learn something from each of those losing trades.
They understand that it’s simply part of the business of trading.
So learn to accept the friendship of losing and smile when you lose. Each loss is an opportunity for you to learn and improve as a trader!
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journaling tool that can lead to valuable performance & strategy insights! You can easily add your thoughts, charts & track your psychology with each and every trade. Click here to see if it’s right for you!Disclaimer: Babypips.com earns a commission from any signups through our affiliate link. When you subscribe to a service using our affiliate links, this helps us to maintain and improve our content, a lot of which is free and accessible to everyone – including the School of Pipsology! We appreciate your support and hope that you find our content and services helpful. Thank you!