How To Cope Up With Stress Of Losing Money In The Market
Evaluate your situation
Rationally analyze your situation – assess the magnitude of the loss, dwell much on the positives understand what it would take to rebuild, go for the contingency plan if ever there was one. many a times the situation is not as bad as it look see if you can work out something with the balance, this would make a good starting point for the rebuilding process.
Do not make a rushed decision
when a trade goes against you its not the best time to make an impulsive action, It is only human to sometimes give in to your emotions and resort to unimaginable measures like withdrawing all other left investments leaving the account dry, some can dispose assets to try and invest more in a losing trade. If you have lost big this is not a very advisable thing to do. It is not a good idea to take action in the heat of the moment. Just take the time to settle down a bit and clear your head.
Change your Leverage and cut down on lot size
Recovering from a major loss is gradual always keep that in mind, do not try and recover too quickly, increasing your Lot size and amassing on many trades per day its the best recipe for disaster take it from me. What you ought to do is make a slight change on your trading plan, manage your risk and lower your lots this gives you many chances for your come back.
Change your trading strategy
When a strategy is not working, if you find yourself in huge losses then its time to change the way you operate, try on another technique that has a better reward winning ratio, this alone gives a hope for future trades. When a trader becomes optimistic some profits are always realized.
Find professional help
Sometimes, it is difficult for us to process our thoughts in case of financial losses its like the end of the world and our mind need help, you must consider finding a therapist if you cant afford one try and talk to your family members or your trading friends, talk up and laugh your losses out.