15: Trading Defensively
I’ve had times where I’d suffer losing streaks or having a period of trading loses with a few wins in between that does not seem to increase my forex trading account.
So what do you think a normal human response would be?
Yep…get on the defensive.
When I get on the defensive, it means now I’m more focused on avoiding losses. This can result in me not taking really quality trading setups that may be forming or trading with a really tight stop loss or exiting a profitable trade too soon because I don’t want that trade to turn into a loss.
Solution:
- know that trading loses happen and that’s part of the game you need to play.
- take a step back from the market…look at what went wrong, analysis your previous trades, re-energize and then once you feel confident again, start trading.