How to control your emotions after series of losses ?

[elisab]

The real thing is capital that decide the emotion factor. If we have large capital then the money management is easy because we will be getting a good return on small position size but with small capital we want to earn good and use high lots that cause more losses.

I agree with you, it is the economic principle of the marginal utility. The lower the capital, the most painful losses…because the end is approaching.

 

[Pharaoh]

I've seen some pretty big accounts evaporate very quickly. It doesn't take any longer to lose 90% of $100,000 than to lose 90% of $100.

 

[irongoose]

Alcohol if you still have enough money left to buy any.

 

[irongoose]

I've seen some pretty big accounts evaporate very quickly. It doesn't take any longer to lose 90% of $100,000 than to lose 90% of $100.

People with $100,000 accounts shouldn't be trading 10 lots at a time anyway!

You can make a pretty good living doing this trading smart with just a couple of lots.

 

[itkraze]

First of all if you are a good trader, then you shouldn't be requiring this situation of controlling your emotions. But if you are newbie, then you should understand this fact that there can be a losing streak as well in forex trading, so that you can tackle with it in a good manner.

 

[Pharaoh]

Even experienced traders can let emotions sway them. The world of forex is littered with the wreckage of accounts destroyed when an experienced trader forgot the lessons that experience had already taught.

 

[itkraze]

Even experienced traders can let emotions sway them. The world of forex is littered with the wreckage of accounts destroyed when an experienced trader forgot the lessons that experience had already taught.

You are right, but why a trader will feel bad on losing trades? Only when he is too much attached to his trades or he had risked too much on a single trade that had gone wrong. So we should remain strict to our trading plan in order to avoid such situations.

 

[Pharaoh]

You are right, but why a trader will feel bad on losing trades? Only when he is too much attached to his trades or he had risked too much on a single trade that had gone wrong. So we should remain strict to our trading plan in order to avoid such situations.

I've seen some pretty good traders fall for newbie mistakes. Overconfidence from long success can lead to breaking one's own rules. If you do this once and the trade works out, you'll be even more likely to do it again the next time a similar situation arises.

 

[Whitesnake]

I've seen some pretty good traders fall for newbie mistakes. Overconfidence from long success can lead to breaking one's own rules. If you do this once and the trade works out, you'll be even more likely to do it again the next time a similar situation arises.

This is the major drawback why even the experienced traders fail in the forex market is because of their negligence towards their trading attitude which bought them success. Never deviate from your rules to be a profitable trader for long time.

 

[FringFX]

This is the major drawback why even the experienced traders fail in the forex market is because of their negligence towards their trading attitude which bought them success. Never deviate from your rules to be a profitable trader for long time.

As always, that is easier said than done. Live trading is an exciting and challenging rollercoaster of emotions and mental acuity.