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How to Rise from Big Losses in Trading

monarchcb.com - Loss can be felt by every trader during his work including big losses after the cut loss which causes the loss of most of the capital. Don't know it's because the market is changing immediately or because of an internal aspect that is disobedient and very rude in trading. What you need to try is to wake up from adversity. How to get back up after a big loss isn't complex; only simple steps are needed. What is difficult is to justify the psychological damage that exists, especially the destruction of self-confidence.

Big Loss in Trading Can Happen

Earth's legendary traders also had to face big losses. For example Jesse Livermore, George Soros. One of the most important comparisons between successful and unsuccessful traders is how they deal with losing trades. Successful traders use losing as an opportunity to practice and improve their trading skills. Losses – especially substantial ones – can be an opportunity to become a more skilled trader. A trader usually just wants a great ape to himself and train after facing the shock of a big loss.

How do we respond to a big loss?

No matter how big the loss, how we react to the loss is more meaningful than the nominal amount of the loss itself. Some people fight against themselves and always trade to make up for their losses. Predictably, he usually ends up with a bigger injury. Others want to practice and try to "trade better"

For those of you who want to practice from big losses, and become a better trader. Next are some steps to practice and bounce back from big losses in trading:

1. Welcoming Responbility

You make a loss, make sure to accept it. Do not fight or blame anyone, including the market, boss or conditions. There are always many alibis, but as traders, we must accept all risks, if we are responsible for anything that is related to our trading. No one is forcing you to quote a specific trading position right? By being responsible, it means that you are also ready to change and make the next trade better.

2. Finish Trading for a moment

When you have recently faced a major loss, you are not in a psychological situation to make the right decisions. When you return to trading, generally anger that is not normal can be disastrous. If so, you may end up with a bigger injury. Take a short break, it could be a few days. It's like not trading.

3. Find What's Wrong From The Previous Trading

When you stop trading for a while, take the opportunity to find out what went wrong. Where did the trade not go well? Were you at that time psychologically as good or bad? Are you obedient in carrying out the trading system? Are you very rude? And the like.

4. For Concepts Create Next Trading

After a big loss, go back to the basics of trading. Focus on the trading system that has been made. Improvements to the trading system, so that mistakes that have been made before are no longer intertwined. Write down all the things to try and not to try when trading. If you need to write it down on paper and stick it near your work table.

5. Start Again With Small Capital

When you start trading again, you may be in a weak psychological situation, with little self-confidence. Start with small capital to build fresh confidence over time by creating your trading system. Many traders who try to return to trading after facing big losses even with capital continue to be large, while they are not psychologically ready. They ended up running out of more money. Many traders repeat this cycle and never recover their accounts.

6. Upgrade Capital

Gradually increase capital gradually along with self-confidence that began to improve. Self-confidence develops along with seeing the positive results that come from successful trading.

7. Patient

It's very annoying to start back trading with less capital than before, but it's for the best. Many people return to trading with the wrong goal, which is to quickly recover the lost losses first. As a result, instead of returning the loss, trading continues to be an injury because it wants to respond to anger at the market. A good trade is a constant way of making profits, not using the karbitan method.


Richard Dennis, the Turtle Trader once said: I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.

If you face a big loss, you need to pause for a moment, then use the opportunity to justify yourself, before starting to trade again. Everything is needed to be able to trade better

I hope this note inspires