How to handle Forex Trading Losses

How to handle Forex Trading Losses

How to handle Forex trading losses? It is simple actually, you should just stop trading. Honestly that is the best solution to do if you do not want to be taken over.

The only exception to this is the trader that is disciplined enough to detach himself / herself from the monetary aspects of trading. It is not easy but yes you have to get into a mental state of detachment from the money in order to focus on the trades. You cannot be worried of the drawdown of your trading account and be 100% concentrated on the setup and market movements. Also to add more to this, you will not be able to pen another trade soon after Forex trading losses if you are not detached from your money thoughts.

Most of the retail traders when they get Forex trading losses, especially larger losses, they would get into revenge trading, they would enter trades even based on nothing, not even setups that have high probability. I have seen traders that not only open revenge trades but leave them more open and expose themselves much more then usual. All this because they think that the ultimate trade is now going to hit and get the account back up to profits! Well sorry, that will not happen. The exact opposite will actually happen. The trades will get worse and your account will end up to zero in a very short time. Possibly leaving the retail trader without trading capital or with just a nominal amount as trading capital after being wiped out.

Anyways, do accept a loss! It is normal to have some Forex trading losses, make sure you balance them off well.

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