How do you handle your losses?

[Pelvell]

Losing trades are inevitable, in fact it is usually harder to make money with strategies that attempt to secure a very high win rate. This is just the nature of the way the market moves. One you have accepted you will have losing trades and go through losing streaks (known as “draw-downs), you have to decide how much you can psychologically tolerate losing without losing your nerve. To do this, you have to have an honest conversation with yourself. You might think you could cope with something like a 50% draw-down in your trading account, but in reality you could find yourself unable to cope even with 25% when it actually happens. Try to visualize it happening, close your eyes and place yourself there.

 

[fxoday]

When face losing trades and make emotion, usually we will make reckless decisions, many traders suggestion to avoid trading when face emotion because decisions made probably irrational, still many chances ahead, in addition when facing successive losses, if we can't control emotion, possible will following by next loss again.

 

[Magestaff]

Losses can be different and they need different approaches, I guess. Some of the losses are caused by the accidential financial movements and there is nothing which can be done. However, there are also systematic errors which happen pretty regularly and bring about lots of losses. In such cases you need to analyze all of your trades very carefully and make notes in order to have enough data for the further analysis.

 

[TRD Andrew]

I'm an adult man. How can I handle the losses?
Like an adult man.
Take a breath and think about your mistakes.

 

[holycow]

I'm an adult man. How can I handle the losses?

If it is for forex trading then we can handle our losses by putting stop loss in order to cut our losses earlier before they could claim up to entire account in my opinion.

 

[fxoday]

If it is for forex trading then we can handle our losses by putting stop loss in order to cut our losses earlier before they could claim up to entire account in my opinion.

Stop-loss is one feature to manage the risk, although not all traders like to use stop-loss, there are traders who said stop-loss only makes a loss because they rely upon all account balances to fight in the market, the last stop loss for them is a margin call.

 

[Toibit]

Using the stop loss on each trade is one of the best way to mentally handle the losses as you know beforehand how much you are going to lose on each trade.

 

[holycow]

Stop-loss is one feature to manage the risk, although not all traders like to use stop-loss, there are traders who said stop-loss only makes a loss because they rely upon all account balances to fight in the market, the last stop loss for them is a margin call.

Those who do not use stop loss eventually blow up their account within no time because a market may move hundred pips against you within one single trading session.

 

[fxoday]

Those who do not use stop loss eventually blow up their account within no time because a market may move hundred pips against you within one single trading session.

Trading without stop loss may work for a certain time, but for long term, the market itself very dynamic, although funds are able to withstand larger pips price movement, it is less effective to increase profit

 

[Kariel]

Just take them for granted. You know, trading activity is a real roller coaster. You can be on top and gain profits, and the next day you can be on bottom and bring losses. Here everything depends on your personal approach to losses, but in fact when you reliase that losses are the parts of trading as well as profits, you will take them easier.
In addition, I would note that the most effective way to perceive losses is to imagine that you have closed the deal successfully. Yeah, the matter is to convince the brain that everything is okay and earned a bit money. At least this scheme helps me a lot.