Oh no, how could i have lost this trade? My indicators, price action/chat pattern and fundamental analysis were all on point, so why should i loose such a perfect trade call? Then you get emotional with a feel of disgust and leave the strategy and start researching for another system. This keeps going on and on for days, weeks and months till you get exhausted and finally break down psychologically. At the end of it all, you end up doing nothing and frustrated. Then you start seeing the Forex market as a scam.
One fact i want all traders to understand is that there is no trader in the Forex market at any level who doesn’t experience loss during trading. The only factor that defines successful traders is proper planning, which involves constant persistence, a time-proven strategy and most of all sound risk management. Most traders will never be successful trading the Forex market until they change their mindset about trading itself. They believe they can find the holy grail which doesn’t even exist by anyway.
I have seen trading signals which looks like a 95% sure winner and still end up in loss. On the other hand, i have also witnessed trade calls that looked 95% unsure and ended up to be a big winner. What am trying to say is that no one can foresee if a particular trade signal is going to be a winner or not. This is why we keep preaching the use of sound money management because loss trades are inevitable in the Forex business. In the 1st week of this trading year, the 5 world’s richest which includes Bill Gates, Warren Buffet, Amanico Ortega, Carlos Slim Helu and Jeff Bezos lost a whooping total of 8.7 billion dollars in the financial markets. This is to show you that no one is immune to loss in the financial markets.
In conclusion, you cant escape loss trades trading the financial markets because its inevitable. You can even experience loosing streaks in a row but a smart trader knows preventing his entire portfolio from total liquidation from a couple of bad trade calls is the only way to survive the trying times or draw-down of the business. Successful traders cultivate habits of maintaining positive emotion or psychology, so make this a habit!