There are always considerable risks in forex trading, since it is impossible to predict the further development of the market situation. The ability to minimize losses comes only with experience. Do not think that professional traders never make any wrong trading decisions, and nothing threatens their funds. But unlike newcomers to the market, they know how to make money on their mistakes. This is possible only on condition that a thorough analysis of the reasons that led to the loss of funds is made for each unprofitable transaction. Trader’s mistakeshave always been and will be. Another thing is important: how does a trader feel about them? The desire of a novice trader to quickly forget about unsuccessful deals ultimately leads to even greater losses. In order to prevent this from happening, it is necessary from the very beginning to develop the correct attitude to such a phenomenon as a trader’s mistakes.
Learn to admit mistakes
First you need to learn to admit your guilt in certain trading actions. Only in this case the trader’s mistakes will be useful to him. They can become a kind of tool for raising the level of professionalism, and hence earnings. Sometimes traders’ explanations reach the point of absurdity. For example, they accuse large market players of collusion that caused the loss. But these same players have no idea about our existence. Often traders blame the broker for their failures. But if you think that the brokerage company is using some dishonest methods, then this means that you need to find another broker. Although, according to my observations, very often such traders lose their money not because of the broker, but because of their own illiteracy and negligence. If the trade was closed with a loss due to any force majeure event, then in this case you also need to admit your guilt. This situation may indicate that the trader did not take into account all possible risks and did not take the necessary measures to reduce the size of the loss in the event of unexpected market factors.
Calm analysis of trading results is the key to future success. Consider a common example. The trader opened a deal based on the signal generated by the indicators included in the trading strategy. But something went wrong. The market turned sharply and a strong movement began in the opposite direction. Who’s guilty? Market? Of course not. The trader forgot about the news calendar. The release of important statistics changed the mood of major market players, which affected further price movements. If a trader admits his mistake, then henceforth he will always follow the news. This will avoid unnecessary losses.
A trader’s mistakes are not a tragedy if they treat them as an opportunity to improve their trading results.