But when your trade just touches your Stop Loss and then goes in your favor without you? Or if it falls short of your Take Profit and then meets your Stop Loss order. Frustrating, isn’t it? Don’t you want to take revenge?
As the headline suggests, you can’t take revenge on the market. It’s just too big, and it doesn’t care.
Too many traders want to compensate such very frustrating losses in one big bang. They don’t check market conditions and just enter one big trade that hopefully will erase all their losses all at once.
This “double or nothing” attitude has a huge potential for doubling your losses or leaving you with nothing. Remember that Martingale can lead to a margin call.
So what can you do?
- Take a break: Taking some time to distance yourself from the losses will calm you down and help you think straight.
- Analyze your losses: What caused your losses? Is your system wrong, or does it need tweaks? Did you trade according to your plan? Consulting a trading pal can certainly help you see the big picture.
- Return with a clean mind set: And not with vengeance. Apart from being calm, it’s important to keep your positions small. Recovering your losses will take time, probably more time than it took you to lose that money. If you follow the 2% rule, your account is likely smaller now. So, you’ll have to use smaller positions in order to limit your risk. Yes, it will take more time and more trades to recover the losses. Nevertheless, trying to overcompensate can only lead to deeper losses.
- Don’t take shortcuts: Climbing uphill can be frustrating once again, and you might tempted to enlarge your positions too quickly after a successful win or two. Unfortunately this can lead to the same pit all over again. So, it’s important to stay focused and keep climbing up slowly.
Did you encounter such frustration that made you want to “show the market” what you can do to it? How did you cope with it?
Editors’ Picks
USD/JPY holds positive ground around 151.50 following Japanese CPI data
The USD/JPY pair holds positive ground for the second consecutive day near 151.45 on Friday during the early Asian trading hours. The cautious approach from the Bank of Japan to keep monetary conditions accommodative exerts some selling pressure on the Japanese Yen.
AUD/USD depreciates on risk aversion amid a stronger US Dollar
AUD/USD extends its losses for the second successive session on Friday. However, market activity is expected to be subdued due to light trading on Good Friday. Meanwhile, the US Dollar strengthens as recent data indicates annualized economic expansion in the United States, driven by consumer spending.
Gold price finishes Thursday’s session set to reach new all-time highs
Gold price rallied during the North American session on Thursday and hit a new all-time high of $2,225 in the mid-North American session. Precious metal prices are trending higher even though US Treasury yields are advancing, underpinning the Greenback.
Top 3 Price Prediction BTC, ETH, XRP: Retail watches from the sidelines with a bias for shorts
Bitcoin is showing strength as markets head into the Easter holidays. As it rises, altcoins are following suit, with Ethereum and Ripple posting almost similar gains. Meanwhile, there remains an unfilled CME Gap, with a lot of liquidity also resting above and below BTC price.
Bears have been standing before a steamroller so far this year
Despite a pushback on rate cuts from Christopher Waller, and what was supposed to be cautious trading sentiment ahead of critical US inflation data released later on Friday, the S&P 500 rose on Thursday, marking its best first-quarter performance in five years.
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