Dealing With Loses As A Forex and Cryptocurrency Trader

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I met a distant friend last night while returning home from work. At first, I called him out, but he didn't respond so I worked closer to him and tapped him on the back, he turned back and looked at me seriously angry. I was surprised at his action because the last time we met, we never had any issues. After trying to find out what the problem could be, he told me how he had lost about $200 trading the forex market that evening.

This is the same issue many traders pass through daily. As a trader or an intending trader, one thing that is eminent in this industry is lost. What matters the most is dealing With it when it happens. Some traders lack what it takes to deal with loss while trading hence exhibiting characters and emotions that most times put them in trouble or affect their relationships. Characters like destroying and damaging things at home. A friend of mine destroyed his PC. Also, some end up getting angry with everyone around them, some cry, while others get to the extent of thinking about suicide. This is the least of the things that many traders have gone through. This is why one must be mentally and emotionally mature and disciplined before embarking on forex and cryptocurrency trading.

Forex trading cum cryptocurrency trading has a way of affecting a person’s mental and emotional well-being. Being that, you will be tested to know whether you are mature enough to handle losses and heartbreaks in life. Most often, people who trade these markets are seen as hard-hearted because of what they go through daily. Nothing in life surprises or shakes a man who sits and sees his money vanish in his very eyes. This is the greatest pain one could endure.

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HOW TO HANDLE LOSSES AS A TRADER

It is important to note that handling losses as a trader most times comes with maturity and growth in the industry. A person who has traded the Forex and Cryptocurrency market for years can handle losses skillfully compared to a newbie in the industry. The first time, I lost about $50 trading forex, it was as if my heart would be cut off, I started having a cardiac disorder which would have generated serious illness. The following will help traders deal with losses

Risk what you can afford to lose This is the number one rule governing trading. Any amount you know that you can lose without having a way of affecting you then that's fine. Many people will use all their savings and trade, hoping to make a profit from it, but unfortunately may lose the money, certainly, it will have a way of affecting the person.

Understand that losses are part of business I think having this understanding is paramount to helping a person deal with losses. Whenever I enter a trade, I only have two things in mind, either a win or a loss, whatever the outcome, I accept in good fate. It is a wrong mindset for one to think that you will always win or be profitable every time you trade.

Take a walk This is one of the recipes that helps me. Most times I will just take a walk from my house, either I'll visit a friend or I will walk in the street. This will help me in thinking about doing anything fishy. It will help me not to vent my anger on anyone or destroy things.

Sit out It is also advisable to sit out and probably take a drink or more(not alcohol). It has a way of calming the heart down in cases like that.

Go to bed Going to bed is another way of reducing the pains that come with losses. Waking up afresh eases the pains while setting you up for a fresh start.

In all of this, losing money in Forex and Cryptocurrency should not be seen as an ultimate worst experience but a means to learn from the mistake which in turn makes one a better trader. Being the best trader is not by the number of wins recorded but by dealing with losses.

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