Managing your losing trades is the hardest part in currency trading profession. The more you will trade the better you feel the heat of this market. Those who are completely new to this profession might not understand how this market really works. They will simply use their emotions and trade the market with gut feelings. But such an approach in the retail trading industry will ruin your career within a short period of time. As a currency trader, you will have to understand the risk factors of this market or else it will be almost impossible for you to make money on regular basis.
Do you really think the professional traders are always winning trades? If so, you have a lot to learn about this market. This market is totally unpredictable and you can’t make any real progress unless you know how this market works. In fact, most of the novice traders become frustrated after losing a few trades in a row. They start trading with a big lot to recover their loss and ultimately blow up their account. Today we will give you some amazing guideline which will help you to deal with your losing streaks.
Accept the fact
The first thing you need to understand is the probability factors of this market. As a currency trader, you will always have to lose trades regardless of the conditions of the market. Never trade to win trades rather try to stay in this game. As a newcomer, you should never consider trading as your full-time profession since it will make your financial condition extremely worse. Consider this profession as your alternative source of income and you will slowly understand how this market works. First of all, try to understand the risk factors of this market. Only 5% of the traders are able to make a profit in the long run. So if you want to become one of them do some hard work and be prepared to embrace losing trades.
Risk a small amount
Those who risk a huge amount can never become a profitable trader. Trading CFDs is one of the most complicated tasks in the world. You have to simplify your trading system or else it will be almost impossible for you to deal with your losing trades. At times you might think it’s impossible to make money in this industry but this is completely wrong. Just follow your gut feeling and start trading the market with managed risk. No matter how good the trade setup is, risk only 1-2% of your account capital.
If you risk a small percentage of your trading balance, you can easily embrace the losing trades. On the contrary, those who risk a huge amount of money, become frustrated after losing a few trades. It’s true you will have access to high leverage trading accounts but this doesn’t mean you will be trading with a big lot to earn huge amount of money. Just try to play safe when it comes to retail trading profession. Embrace the fact losing is just a part of this profession.
Always take break
We are a human being and we are not designed to work 24 hours a day. Trading should be done in a stress-free environment to avoid big mistakes. If you trade under huge stress it won’t take much time to lose your control over your emotions. Just follow the footstep of the successful trader and you will see a dramatic change in your career. Try to spend some quality times with your friends and family since it will refresh your mind. If you are not sure about this profession, find some expert traders and try to learn from them. Following the footstep of the successful trader is the easiest way to earn money in this industry. And always train your mind to embrace small loses and trade this market with a high-risk reward ratio.