The author of this article is Joe Ross, a popular trader and creator of the widely-used theory of technical analysis.
During my career, I had many fatal moment. Many times I had to restart the whole investment process from beginning to offset earlier losses. Traders need to be able to lose the bitterness of the loser and accept the loss of money. It is this ability that determines if we will benefit from it in the long term.
You get used to the losses
Despite many efforts, it is sometimes difficult for me to pick myself up after a serious loss. I read once that you should love defeat. To me it sounds a bit like masochism, and I do not advocate so extreme despair.
Even if you are a trader with many years of experience and you have a 100% confidence in yourself and your techniques, so it is not easy to go on the agenda after the big losses. But since you have the experience, this loss is probably due to a stupid mistake which is likely to be easily identified and then eliminated. Despite my vast experience, I continue to commit painful consequences. I’m not ashamed of it, for I know that its 100% elimination is impossible. But always, when it goes, I analyze my behavior and try to avoid similar errors in the future.
If you are a beginner, a serious loss mean lack of the right skills. Many beginners start after the first great defeat of often doubting their skills and feeling for further trade. Such a think is natural. It seems when we are not yet aware of the potential power and skill who sits in the us. Confidence, persistence, ability to analyze errors and improve the properties of the that the beginner must acquire as soon as possible and which will make it possible for them to return to the trade with high quality after large losses. How to get into these routines?
Use the following two tips
All the acquire with the experience – it combines the previously mentioned properties of the traders. To the difficult trading period should not lead to excessive disappointment you have to take both of the following actions:
Make a list of transactions where you have earned an above average earnings or you are proud of. Ideally you will also remember other difficult situations where you effectively rebounded from the bottom. Keep this card suitable and use it only when the difficult times come. The memories that follow these good times will get you to remember how once, in spite of your difficulty, managed to oppose them. Optimism and good attitude is half of the success!
Distill and put away the dreams of the fortune to the side. It is best to treat the investment as a serious game. Less pressure means more freedom, which in turn will make your brain more likely to absorb the information, then process everything much faster and more efficiently.