Why you shouldn’t give up after initial loses?

Why you shouldn’t give up after initial loses?

One of the most common reasons why people ditch their newly started Forex journeys, are substantial losses, incurred shortly after the beginning. Of course, any activity requires going through a learning period, and Forex is no exception to that rule. Unfortunately, many people make two common mistakes that are extremely discouraging (and which can be dangerous):

 

They invest money they can’t afford to lose.

They listen to some random online „guru“ who promised them millions, within a month of working 1 hour per day.

 

Sometimes their Forex adventure lasts a bit longer but even then they resign, thinking „I’ve tried everything and nothing works“. Quitting seems like the only logical option. But is it?

 

The truth is, the time you’ve spent as a beginner dabbling and losing your savings trying to cheat the system, or losing because someone promised you the earth with their super fancy trading system (for just $xxx), is one of the most important times in a career of every trader. Because, since you’ve already lost, you will be more cautious, and the fact that you hit the bottom at the very beginning makes you stronger in the long run.

 

After you’ve incurred loses, the urge to „make money today“ diminishes and can slowly be replaced with proper analysis and calculation. You can finally silence your inner voice, telling you to „go all in“, and instead you can become more rational, making balanced decisions.

 

After some time of taking things slow, you will notice that you are able to better manage your money and risk. This aspects haven’t been so interesting in the beginning, when you were blinded by the promises of incredibly easy money, earned with just a few simple clicks. If you want to recover from losses, which you incurred at the start, don’t treat them as losses at all. Turn them into valuable experience and don’t neglect proper risk analysis and risk management, as negligence is the first step to losing even more.

 

Most of the beginning traders will lose their first, second or sometimes even third payment before they wake up and start treating things seriously. If you haven’t started yet, manage your money well from the first payment, but if you have, look at the losses you’ve incurred and try to draw conclusions of what lead to them, before sending in more money.

 

It’s never too late to learn Forex trading, but you have to treat it seriously from the very beginning or you will lose every time (unless you are extremely lucky, but luck alone is often not enough). If you’ve already lost your money, consider it a fee for your investment lesson. A moment of self-doubt after a failure is a moment where you should look at what went wrong and give yourself a second chance, this time avoiding earlier mistakes.

 

Categories: Tutorials

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