Most of us traders have been there, incurred so many losses,
so many times that we’re actually unsure of whether or not we should
continue trading. Well we’re here to tell you there’s nothing you
morally did wrong (unless, of course you cheated to get on top) you
might have made some common trading errors that a lot of beginners tend
to make.
We’re here to help you get back up when trade
financially and emotionally hits you hard in the stomach and reminding
you that you can’t let one streak of losses ruin all your chances of
succeeding in the future.
Understand What You Did Wrong
This step is extremely very important because
before you can get back up and think, “Okay, I got it this time,” you
need to know what you did wrong to fail the first time around, if you
don’t do this you’re just in for even more losses. There are basically
two types of losses that a trader can go through;
A statistical/normal loss:
A statistical loss is one which is incurred mainly
due to some sort of overvalue or undervaluation that might have
effected your trade strategy, this type of loss can also be called a
normal loss because it is normal for a trader to often at times lose.
The fact of the matter is that there will be losers in a trade as well
as winners, statistically speaking, even if you employ the most winning
trading strategies, a certain percent of you will definitely be losers.
Emotional loss
Emotional loss is pretty self explanatory, all
traders are humans, and human beings sometimes do let their feelings and
emotions get in the way of their work. Emotional loss also refers to
losses made when you let your inner feelings such as desire for revenge,
greed or over confidence get in the way of you and your real trading
objectives. You can even feel pressurized- especially if you’re a full
time trader to gain as much profit as you can and this can lead to
losses if you’re not able to handle the pressure properly.
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