After losing some I won a generous amount of cash the other day. There I was sitting next to my computer monitor trying to stop the set of uncontrollable giggles that erupted right after the winning. This made me think – in the word of forex market, can forex trader feel the same excitement without losing? Is losing a necessary piece of a puzzle to enjoy forex trading?
We can all agree that winning something is absolutely amazing, especially if it is money. On the other hand, losing in forex trading can be closely compared to taking a beating. Could this be the reason why forex trading is so attractive, scary and yet no less fascinating?
The Importance of Losing in Forex Trading
Losing is a relative term and it differs from person to person. Based on time, self-confidence, financial situation, forex trading history and many other factors losing has different psychological effects. For forex traders with bank account full of thousands of dollars losing couple of hundreds won’t do a thing. At the same time a forex trader that cannot really afford a loss can go berserk! What do I mean by not being able to afford it? Let’s just say that your wife told you a month ago that you cannot use any more money for trading plus this is your 10th lost in the row. Do you get the picture?
The psychological and physiological reaction of losing is of course pain. losing a trade really hurts! And it hurts for real – your stomach turns up side down, your blood pressure goes bonkers, your muscles become so tense you can hardly breathe. It hurts more then a “no” from a girl you had a crush on in high school. As forex traders we have all been there.
Not just as forex traders but as humans the idea of pain is unbearable, so to get rid of the discomfort we try to find a way to get rid of the emotional rollercoaster. And you do it by clicking into another trade! What is the ultimate pain losing technique? Winning! And you want to make a good forex trade as fast as possible! And that is a perfect example of a complete disaster – you lost and you are extremely upset. On top of that you have exhausted from previous forex trades, your eyes hurt, your back is in pain, you have a horrible headache… all that accompanied by the pain of losing 5 minutes ago.
You want to feel better physically and physiologically. You want to show yourself that you are a great forex trader and to redeem your self esteem. Patience and a sense of reality go out the window and you impulsively make new forex trading orders without thinking straight.
What is important to realize that you are experiencing when you loose is out of your control. The physiological pain is controlled mentally and only patience can save you right now. Good forex trading requires lots of patience, good strategy and a positive attitude. You should not trade in a hurry. You should not forex trade when your body is out of control.
And here is the list of things you should understand and follow:
- You won’t feel like a complete loser after every forex trading lost, however it is important to know the triggers that turn on your psychological pain after loss. Recognizing the symptoms can save you a lot of money.
- Adjust your forex trading so that the opportunity of feeling the loss doesn’t happen too often. By that I mean trading with fewer amounts, or maybe setting stop loss better. The advantages of forex trading are of course the features and options forex brokers provide. Use them for your own good.
- When you loose, recognize it and step back. Turn the computer off, take a shower, go for a walk – cool down. It is important to change the atmosphere in order to not get too evolved in your own emotions. Physical loss reactions need physical action from your part. Stop forex trading and do something completely different, as far away from your computer as possible.
- If forex trading affects your life, finances or your family you should consider getting a professional help. Yes, sometimes forex traders need a shrink. Maybe forex trading isn’t for you in the first place.
Still, my question is whether the beauty of winning would taste as sweet if we didn’t sometimes lose trading forex. I can almost certainly say that it wouldn’t. Losing is a necessary part of forex trading. Without it profiting should be too easy…to simple… to shallow!