Losing is common in forex as there is no way to escape from this trouble. Although the smart investors will occasionally try to find out a solution, this is an unavoidable fate. As this sector is growing rapidly, investors are increasing more deposits, which subsequently pushes the competition towards a dangerous edge. If you do not know how to contain the losses, it will be the end of the career after a few weeks. This is a process of learning which requires people to make smart decisions. Full-timers lose deposits as well, but due to their excellent strategy, they manage to cover the losses up with a profit. Many think they will focus on foundations and develop a strategy that cannot fail. This is not true as losing is inevitable due to the volatility and constant change. The professionals frequently fail to generate money as it is very hard to accurately forecast the future movement.
In this article, we will explore some techniques that are supposed to contain losses. However, do not get excited as proper methods are essential to make investment decisions successful. After going through this post, we expect the readers will realize the schemes described and use them in live performance to see a visible change. This will not happen overnight, but given time it can produce the expected result.
Be prepared to lose trade
Setting up the mindset to accept the losses is the first thing you should learn as an ETF trader. People in Singapore are more focused on the trading method. Developing a trading edge is a simple task by having the mental stability to accept the losses is hard. Many investors often give more priority to mental stability than technical skills. So, learn to embrace losses at Saxo so that you don’t become restless to recover the losing trades.
Always set a stop-loss
It does not matter at what level the investors belong. People should use this tool at all times in the trading platform. They are the most wonderful equipment to contain drastic failure and prevent further damage. Novices do not realize the importance and start investing capital at their risks. Sooner they face reality, but as this was not set, they hardly have any chance to tackle the outcomes. Remote execution provides a better grip, and this is exactly what traders need. In the future, do not forget to set up a stop-loss if things go wild. There is no way to successfully predict as this sector is inconsistent. News from finance can unset the market, resulting in unprecedented outcomes.
As the majority deposit a minuscule amount, brokers offer the capability to invest big funds with this special advantage. Do not get carried away as there is a catch. Unless the decision does not generate profit, it will take away much more capital than expected. The dangers are as great as possible fortunes. People are over the moon when they discover this technique, but little do they realize the gravity of mistakes. Unlike routine trading, a small flaw can become costly, which can end the career. Do not get tempted by the trends if they appear favorable; there is no certainty in the ETF business. Leverage is a lethal instrument which often backfires if misused.
Refrain from taking revenge
This is human nature that exposes threats to funding. To manage the capital safely, there is no place for taking revenge. This industry is not a living being that can be avenged. People lose temper when failures get out of hand. They frantically try to recoup the capital and end up making worse decisions. This goes like a cycle, and soon the account is blown out. If you have lost, accept the fate. Identify what went wrong and make the performance better. Do not go wild and exact revenge as it will only make the cut deeper.
Look at people who earn less than you
Looking at people who learn less than you will actually help you, psychologically. This will make you feel a lot better about your career choice and will aid you in focusing on your work more. You get to be more grateful to God because you see yourself in a better position than the ones who earn less than you. Don’t give up and come back even stronger.
Gather your confidence back
Facing a big loss in trade can haunt you in dreams of days. Your confidence level will be too low to act properly. You’ll be too afraid to make any further decisions. Loss of confidence might result in wrong decisions, thus affecting your trade even more. All you need to do at this time is to take a break from everything and motivate yourself to make an even better and stronger comeback. Taking a break will give you enough time to focus on your goals again.
Start off again but with something small
It’s not possible to gain your former position all of a sudden after the loss. Every loss takes time to heal. There is no obligation on you to start again at the same position that you were trading on. A few wins at a smaller position will motivate you enough to start off with something big. Don’t take any chance of starting with something big right after you face any loss in trade. It is easier to face multiple losses in a smaller position than to face one big loss in a bigger position.
Locate your mistake
Focus on your loss. The biggest life lessons are always learned from mistakes. Focus on the strategy that you had been using and find out where everything went wrong. Coming up with a new strategy is not always the right option. With a new strategy, you’ll have to focus on a totally different way of achieving your goals. However, finding out the mistake with your previous strategy will actually save you time, and the comeback time will be short.