As the faster way to gain money the forex trading is also full of risks, I hope you’re aware of such risks. It’s not wondering that you already have experience of loss in forex trading. Today I’m gonna talk about how to recover the loss in forex trading. We’ll discuss which strategies and steps could help you to cover that money more or less.
Accept the Truth
As the quote said – life is not always easy, so why forex would be easy for you? Now it’s time for both of us to confess that forex will be a harder way. Well, it doesn’t mean very hard, so don’t fall in frustration. Forex is a battle against big money banking system who always sets trap for us to get more foreign money and less spend local money.
This is why most of the traders usually novice traders lose their money on these battles. So don’t give up right now if you insist to get your money and a better living. In this blog, I will guide you a step by step way to reduce losing and increasing profitable trades.
1) STOP Right Now
If it is your disaster day – then stop your trading fantasy right now. Don’t make it worse than worst and prevent yourself stressful in that much. It will lead you down and will make mentally exhausting. If you got yourself angry then stop being that, usually people attached by emotional behaviors’ such as insistent against an opponent.
Believe me, 99% of case you will lose more money if you don’t listen to me on your bad day. You have to understand that the market is not a place like an apple tree in its season – your job is just to grab it and pick on your basket. Often – people lose money, so bad days come up. In this case, a cool guy makes himself cool and stop giving more shits to the market. No matter which currency he’s trading.
2) Reset Your Mind
Yeah, a big loss causes stress, anger, frustration, hate comes up eventually. It can cause also doubts about foreign exchange trading system. Also maybe you’re thinking about revenge against the broker or even the market. But you gotta understand that there’s no way to recover that money without a clear brain.
In other scenarios – a series of successful days makes us comfortable and lethargic, you know. So a big shock comes up with a wake-up call.
So, what you can do is change your mindset. Exhaust your psychological self-harming and other dilemmas. Maybe it’s the time to get your key and ride alongside nature. Better if you find a jungle or green area. You can go to a park and of course, you should have your partner with you. Boyfriend or girlfriend or whatever your near ones. Just don’t remember the bad thing (loss).
You might agree with me that money is temporary. It won’t stay with forever. That is why you shouldn’t damn care about it. It’s gone, no matter; it will come again! So enjoy!!!!!
Find the Reason
Is it your fault? Did you lose your path while trading? I mean did you executed according to your plan? If everything is worked in the right direction then what’s the matter? Did technology stop you? Or sudden news made your trade collapsed? Have your good way to protect your trading capital?
If an announcement or market changed due to surprise news then don’t blame yourself nor your luck. Actually – I don’t believe in luck, so when something happens well I won’t credit it to luck so why when it’s bad?
You’ll get many reasons and excuses for the loss. You will find a lot of issues to blame this and some of these are definitely meaningful, I might understand so do you!
Don’t Think Too Much
You can spend the time to find an alternative route. But don’t take too long, and assume something abnormal. Remember overthinking will fall you in fantasy situation – and it will waste your time! After a time, you should found yourself suitable for recovering the lost money and of course you will not regret when it comes.
3) Make Some Fixes
S/L (Stop Loss) option is very important to trade in forex. Don’t forget to use it. Also, T/P (Take Profit) Option should be used simultaneously with stop loss.
Did you have your own money management policy? How much % of balance you want as stop loss level? How much for a reasonable trade?
But the most important thing is did you set your own trading methodology? Or you’re simply using other’s knowledge or some paid signals. Paid signals won’t work as expected – it has already proved many times, don’t be a kid. The world is not a fantasy or someone’s guess. So why, you have to rely on someone else’s idea.
Signals could be avoidable – I didn’t mean that anyways, forex signals are for expert forex traders who have a vast knowledge already and want to make sure about the decision. They know when to use some signals and when to avoid.
- Did you overtrade?
If you overtrade on the losing trades, then it’s time for you to learn that overtrading is not for you. You’re not a child, come on – why you want this?
- Didn’t you take breaks?
If you are trading forex for a long time since you are not losing, then a break will do the job. A typical break and relax will make a significant change in your trading life.
- Are you in hurry to recover?
If you’re in that mood then stop it NOW. You’ve already lost money and you’re not learning. Hey! Do you want to lose your bucks again? If not then grow up your mind and stop being hurry.
- Did you keep trading records?
I hope you can take care of your money and keep your notes regularly. If not – please start it at least on next trades. Being logical is cool, you know that. So don’t follow joker’s way and use your human way of being a modern guy.
- Can you control your emotions?
Listen, if you have problems with emotions then it is time to check it up with psychological parameters. If you think you should consult with a psychiatrist then it is cool. Cause a good psychiatrist can help you to change your big problems so you can trust them.
- Do you deny experience?
If you think experience does not matter when you’re learning it now from lost trades. Do you know, after more experience then more makes a trader an expert. Agree with me that experts are reliable in their field.
- Do you play with support resistance?
Well, I am not talking about only the support and resistance – I am talking about most common forex trading tools, in other words, basic tools.
Indicators, moving averages and other staff will help you to find short or long. So you can get rid yourself from being a common group so you can get money instead of losing.
- Did you lose your confidence?
Yeah, this is the big question after your loss. If you didn’t lose the confidence then you’re really a tough guy. You can make it with no big break, surely.
But if you lost it then you need to re-prepare yourself with self-development process. First, you should understand that it’s a win or lose game. In a game, the winner is cool but being lost is also a part of it. Sportsmanship never allows regretting defeats.
If you accept science, if you accept logics then don’t try to do something extra-ordinary which can’t do. In real life - when someone is trying to do an extraordinary thing, actually it ended up with a waste of time. In result what he got? Maybe he got some eye’s attention.
In fact, extraordinary guys aren’t in common, they do things and we see the outcome. Especially in forex’s flow – you have to rely on information. Because it can screen 360-degree view of the market image and explains how it could go. So, if you want some dependable way, you should care about reality and logic.
4) Take Actions and Prepare Again
There’s always something to do in forex, definitely, it’s not a no-win situation. If you think a change can make benefits then try it.
As an example, you can change how it looks your trading portal’s background and foreground colors. And the significant one is - If you don’t have enough trust with this broker then kick its ass.
The necessary thing in this step is you have to out of trading for at least a week. A trading week is 5 days, you know about it. The time could be reduced if the disaster is a failure of your trading methodology. Yeah, the timeframe depends on your own judgment.
Get Back to Basics
Before the first hit on the recovery process, get back to basic things on trading, it will give you extra energy after successful gains. After got the basics, stat forex trading like a beginner.
Don’t Ignore Diary
Again, write an important marking note on your trading diary about the incident. Don’t forget to mention, how much it costs you to relieve from the stake, what were background situations about that loss.
Do Some Draft
Don’t worry, after the big loss, your normal confidence won’t work. Good preparation will help, do a few demo trade with variations, so you can see your methods are cool.
Keep your eye on your mind that you’re not aggressive in trading, also you don’t have fear of confidence. Take small lots and then your normal volume. At the time, use your cool head and don’t make yourself in an abnormal situation.
Rebuild the Confidence and Get Back on Trading
If you can take care of market influencing elements and your judges do work in demo trading then you can start it on live account again.
5) Again - Live Trading
If you are cool with all the steps above then it’s time for you! But don’t re-trade with a big amount. Consider smaller volume in the first few trades. Do the researches again as you did while demo trading. You may restart your trading with a bonus, but this time you have to know how does a forex bonus work at all. Don’t afraid of anything now, because your methods, already proved in the demo.
Check the Trading Market
Just double check your spread before starting. If you’re scalping and have big spread then consider for an ECN account if your broker has. If not, then find a broker who does this. Sometimes, broker houses want to profit directly from their clients so the charge has to be big. In this case, a trader like you can be influenced by the charge and SL reaches in a small difference and bounced back to your calculated price, hence the disaster comes, ruin your psychological peace and later it causes a big loss.
Must Follow Steps
There are many guys who come back after a huge loss but it didn’t work for them. Do you wanna know why? They didn’t prepare for the battle, so they have to ruin their cash. So make yourself, you’re ready to recover your loss, you’ve passed all the steps told.
Don’t Start With Big
If you’re thinking with a big bounce on regaining money from the industry then stop it. Start small, because the losing streak can kick your ass again and will lose your interest in the Forex market. You will regret forex in this case, if you fall again. So be brave but not fool. Don’t hesitate yourself for small money, it is not so long to get annoyed. The recovery process is not a claim for big profit you know, so be careful about your goal. You’re implementing your trading strategy with the process as well, keep on your mind.
Deal With Confidence
Forex trading is challenging to accept the challenge and for the smallest amount of time. You will know what market condition works for your golden chances. What felt you best while the trading scope is come up and of course check it, compare it with your previous note of technical and psychological matter.
The Final Word
If your trading method worked according to the route, then you’re the winner. Well, making bucks isn’t the real destination. The goal in my consideration is building up your own method with a well-researched plan what works. If you follow my described steps above then you should be a real forex guy. My intention in this post is learning from lost battle. Did you aware about my intention?
At last, I will ask you to encourage me by sharing this blog post with your social media and friends, who could get favor by reading this. If you think so then, it would be great. So! It’s up to you. Bye!