Losing happens unfortunately, quite often, in terms of trading forex, whatever your level of experience. The foreign exchange market is what we call a zero-sum game. Someone is, indeed, necessarily on the other side of your trade, then losing is just a matter of time.
If it is an integral part of trading, no one likes to lose, be it beginners as well as professionals. To help you better manage these moments of doubt, here are the 4 steps by which each pass…as in the case of a bereavement !
Step 1 : denial
Often when one loses, one begins by being in denial. We refuse to believe that one is the cause of this disappointment and that his idea of trading was probably not good, it is looking for an apology, etc, there is nothing wrong with it at first because it is a way to relieve your ego, to survive the loss and go forward.
Step 2 : Rationalization
Once the denial phase is past, generally, we begin to rationalise a bit and to focus on the configurations of trading. It has a tendency to quote all the relevant elements and it is, naturally, besides what has sin. In the end it is still convinced that he has not committed an error.