Roberto21 posted: after having a losses from trade we become emotional and trade over and over , we lost our motive and mind , as a result become loser. its more appropriate to become cool when having a loss and stop trading for a while.
On the other hand, we need to use the Stop Loss trading tool for sure!
EbonyJones posted: Loss is a common thing in forex trading. If you can deal with your losses properly, you can become successful in this market.
yes, you are right loss is common thing in Forex and most of the traders loss their money and leave forex quickly. But you can minimize your loss if you have proper strategy and plan and also have good money management and these all things come with experience and practice.
It is not possible to make a profit in trading if there is emotion. Emotional trading is very harmful to your investment. When I lost a trade, I would open 4-5 more trades to cover that loss, and then I would see that all the trades were lost because I gave priority to my emotions. To control emotions, you need to meditate after each trade close. Meditation helps to control emotions.
Reacting to a loss by opening a new trade is called revenge trade. Never do that. By doing so your mind get messd up. Most of the time we become unable to understand the market. We should be relaxed and think logically and make logical decision.
Losses are not always the result of a mistake. No system is 100% perfect. But definitely don't 'stop trading for a while' (don't revenge trade either ofc) because of a loss. Reevaluate the situation. Consistency is not always gaining, it's minimizing the losses as much as possible.
To overcome this issue you need to know what you are doing. As Warren Buffett said, Risk comes from not knowing what you are doing. If you know your strategy, winning percentage, risk-reward ratio properly, you will not react to any loss. Because you know you will recover it.
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