7⃣ Psychological rules to follow after making "Huge losses"
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Beginners, as well as experienced traders, go through times where they make a big loss but what makes a successful trader is how they deal with losses
- How to deal with Big Losses
- How to come out of Big Losses
🧵
Beginners, as well as experienced traders, go through times where they make a big loss but what makes a successful trader is how they deal with losses
- How to deal with Big Losses
- How to come out of Big Losses
1⃣st Rule
Never let a bad day cost you more than your average Win day
- Trading is like a business so maintain a trade log.
- A good businessman will always have a proper account to gauge his Strength and weakness
- having per day loss less than avg win day will keep u calm
Never let a bad day cost you more than your average Win day
- Trading is like a business so maintain a trade log.
- A good businessman will always have a proper account to gauge his Strength and weakness
- having per day loss less than avg win day will keep u calm
2⃣nd Rule
Know your Stoploss before you ever get into the trade
- It helps you to focus on risk management 1st and then profit
-SL is like insurance, you hope you don't need to use it but its better to have one.
-Don't widen your SL, your success is not defined by a single Trade.
Know your Stoploss before you ever get into the trade
- It helps you to focus on risk management 1st and then profit
-SL is like insurance, you hope you don't need to use it but its better to have one.
-Don't widen your SL, your success is not defined by a single Trade.
3⃣rd Rule
Don't get involved in Revenge Trading
-It shifts your mentality from making a profit to recovering losses.
-Even if you recover losses, now you have trained your mind to "it's ok to break rules sometime"
-This is the biggest cause of overtrading
Don't get involved in Revenge Trading
-It shifts your mentality from making a profit to recovering losses.
-Even if you recover losses, now you have trained your mind to "it's ok to break rules sometime"
-This is the biggest cause of overtrading
4⃣th Rule
Accept responsibility for your trading decision
-Not accepting it,will shift your mind to final outcome rather than improving your trading process.
-It will also make you believe that trading is like gambling
-Accepting it will help you to learn from your mistakes.
Accept responsibility for your trading decision
-Not accepting it,will shift your mind to final outcome rather than improving your trading process.
-It will also make you believe that trading is like gambling
-Accepting it will help you to learn from your mistakes.
5⃣th Rule
Stop trading for sometime
-Taking regular trading breaks is difficult but necessary
-helps you stay detached from the market
-It also gives a gap in your losing streaks.
-Can you heal yourself while fighting? NO!! hence trading breaks will help to heal psychologically
Stop trading for sometime
-Taking regular trading breaks is difficult but necessary
-helps you stay detached from the market
-It also gives a gap in your losing streaks.
-Can you heal yourself while fighting? NO!! hence trading breaks will help to heal psychologically
6⃣th Rule
Take a lower position size while trading
-It's annoying to start again from a lower position size, but it's necessary
-This doesn't allow losses to disturb you drastically
-Hence allows you to look at losses objectively
-Helps you to correct your mistake at low cost
Take a lower position size while trading
-It's annoying to start again from a lower position size, but it's necessary
-This doesn't allow losses to disturb you drastically
-Hence allows you to look at losses objectively
-Helps you to correct your mistake at low cost
7⃣th Rule
Let go of the outcome and embrace the process
-In the real world we are trained to judge everything based on outcomes
-But trading is like a art, you need to focus on improving your process of stock filtration, risk management, entry, exit,target to become a good trader
Let go of the outcome and embrace the process
-In the real world we are trained to judge everything based on outcomes
-But trading is like a art, you need to focus on improving your process of stock filtration, risk management, entry, exit,target to become a good trader
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The goal is to educate people about markets one thread at a time.
Follow👥@AakashSSawant1 for more such content
Checkout my Twitter timeline for the previous 2⃣0⃣ Strategies/educational content
docs.google.com
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