Jun 6, 2018
If there’s anything that is synonymous with the art of day trading, it is that you will have to undergo losses at one point of time or the other. While most traders who have accepted these losses have moved on to turn into profitable traders later, there are some who cannot accept these losses who eventually make several more mistakes that wouldn’t have occurred if everything went fine.
Most experts say that it is important that you learn to accept these losses as they are just as important as making good traders, and so here is a list of survival tips that you can use to deal with trading losses:
#1: Attitude is everything
There are two ways of looking at the situation: either you can choose to hold it together and stay positive, or you can let the trading loss get to you, resulting in several more mistakes and which stems from a negative attitude.
#2: Remember the Law of Trading Probability
Every trade has a probability of winning and loss, and so, if you are expecting certain profits, it would be wise to reevaluate your approach to trading as a whole.
#3: Look for support from others
If you feel let down by the loss, then sometimes it is a good idea to seek guidance from your trading partner or even a mentor. They should be able to help you look at this loss from a different perspective that encourages you to continue trading.
#4: Look at the loss as an opportunity to learn
Instead of moping, ask yourself what you can learn from this particular loss regarding either market action or trading behavior, and in more cases than not, you do find some answers that might help you in the future.