Let’s face it, no trader in this world has a 100% winning rate and those who tell you they do are bullsh*tting. We all lose trades on our trading journey and that’s perfectly normal. Dictate your success based on your equity curve, not by your winners and losers.
So… What is harder than losing a trade in the Forex markets?
Facing a losing streak!
A series of losing trades depletes your trading account, depletes your confidence and eats away your delicate wall of psychology that’s keeping you sane.
Try to imagine that the markets as a battlefield. Every move you take means every trade you enter with your strategy. Every winning trade is a battle won and every losing trade means a battle lost. Imagine losing 5 consecutive battles, are you now still confident as you were when taking the first move? What thoughts that are now running wildly in your mind?
This is what happens to a trader when they face losing streaks. “Winning” becomes a vague term while “Not losing” and “Minimizing loss” becomes your main focus, which of course leads to more losing.
The 5 losses that you took had affected you mentally to a point where every trade in the future is taken with less and less confidence, sometimes even side lining, abandoning the trade or even forgoing your trading plan and trading setup, over-leveraging in hope to WIN BIG.
And we know where all this leads to – Revenge trading and Blown accounts.
A seasoned trader knows that there is timing for everything.
There are times when winning streaks take place and there are times when losing streak take places. It is the strict practice of risk management so that losing streaks will have minimal impact on the trader’s account. We may hatred for losses but avoid letting fear and losses overwhelm us.
Be the general who picks himself up and get ready to lead into battle, not a general who is too scared to play his next move.
Remember that, losing is also winning. When we lose, what we lost is money but what we gained in the battle is valuable experience and lessons. Losing money is easy, but
Taking the loss, and accepting it is what we must master to achieve trading success.
Know that the only breakthrough from a losing streak is going through the losing streak. Be aware that we can only push buy and sell once our trading system generate entries and exits, but what happens in-between them are completely OUT of our Control.
Does a losing trade upset you? Do losing streaks anger you? Sure, but recognize you are not in control of the market.
Overcome your emotions, accept them and focus on what you can control – Your Trading System.
Once you developed this routine and habit, Results and Profit are just a matter of time and patience. 🏆 What doesn’t kill you makes you stronger and what doesn’t margin call you, makes you a better trader. Trade safe.