Trading psychology : What to do after heavy loss?

29 сент. 2019 г.

This post is for the followers who shared the information about their loss in trading. They motivated me to write this post. Newbie traders blow up their trading account or face heavy loss in the process of learning to trade. So what to do next after a heavy loss? When we have heavy loss our mind becomes unstable and we do irrational things. First we have to stop trading few days and should make our mind to come back to neutral level. Getting stable mind is not possible at that time, so make the mind neutral. Meditation helps some people. For some people gardening, spending time in nature helps to make the mind neutral.
Next what we have to do is taking a list about why we got loss. It may be lack of technical knowledge, greed or lack of risk management. Whatever the reason is write down how to rectify it and promise yourself with out rectifying you wont enter trading again. Doing all these things gives you the "power of taking responsibility".
When we blame others or market for our loss, we become powerless. When we take responsibility of our actions, we get the "power of taking responsibility". The Ultimate power lies within ourselves. We have to nurture it by giving the "power of taking responsibility". How many times in your life you have blamed somebody else for the set backs you faced? And by doing so you made yourself powerless, defenseless. Thus giving your "Ultimate power" to somebody else. Think, take action & nurture your "Ultimate power". By doing so you are making yourself "a perfect trader".