Imagine you are participating in a race and you did your level best to win the competition. But unfortunately, you couldn’t make it to the top 3. You must have felt very disappointed because of your loss. However, would just losing one competition cause you sit down and pledge to never take part in another race? Well, if you are passionate about your sport, you would say no.
Similarly, there are times in trading when a trader has to face the bitter taste of losing. But would that stop him from trading again? A wise trader never cries at a corner and loses his hopes. Rather, he starts preparing to overcome his losses with more enthusiasm than before.
Being sadistic after losing a battle won’t help you. Instead, it will make you feel worthless and incapable of doing your job. If you are one of those traders who has recently faced a trading loss then answer a question. Does losing one single trade make you a less competent trader? What do you think?
We think several factors worked behind your failure. For example, an error in calculating the risk-reward ratio, not following a proper trading plan, etc. But don’t lose hope yet. You still have time to recover what you have lost if you have the spirit to do so. So, don’t get depressed and feel worthless. Read this until the end to learn ways to recover from your loss.
Learn from your mistakes
As we have stated earlier that it is completely okay to lose as long as you try to learn from your mistakes. After losing a deal, don’t just sit idly by. Rather think about what you did wrong and when you did them wrong. Find out the holes in your plan and come up with ways to fill them up. When you realize your mistakes, you will also be able to understand your limitations. As a result, it will enable you to put more emphasis on those aspects and improve them.
You can also note down your shortcomings and ways to overcome them in a journal. But this is not the end. Apply whatever you learn from your previous mistakes to your next trade and see whether it worked or not. If it doesn’t work yet, evaluate your working mechanism again to find the right solution. Sign up for a free trial and test your trading strategy to fix the faults in the system.
Don’t be demotivated
A disciplined trader is never demotivated in his work. He believes that life has ups and downs and it is only right that we accept them. While you suffer from a trading failure, don’t let it affect your emotions. Divert your mind whenever you feel demotivated and do something you enjoy.
Always remember that whatever happens, happens for a good reason. So, after you fail, take it as a lesson for your future trades and work in that manne4.
Try to recover your losses
Normally, recovering from a big loss is often very tough for investors. They might have lost most of their capital and now have a small portion remaining. Often many traders have debts that are already hard enough to pay. So, what to do in this case? We say to start anew with more enthusiasm. You might say that it is impossible. Then remember when you started your journey with us in this field, you had zero winning trades and no prior experience. But now after coming a long way, you are more experienced and know how the market works better than any other noob trader in the field. You would have a better survival chance than they have. Then why are you afraid to try this. You knew the risks when you stepped in here. Then why not now?
Undoubtedly, you must have suffered from self-doubt and emotional vulnerabilities when you faced your big crisis. Never forget to believe in yourself though.