Making peace with failure in CFD trading profession
The fear of losing trades always hunts retail traders. After a few losing trades, new traders get confused as they don’t have any options to recover the loss. They start taking the trades by breaking the discipline. To them, recovering the loss is the main priority. But things are not as easy as they seem. With the great hope of recovering the losses, they ruin things by becoming more aggressive. Fear forces them to take trades with high risk.
Overcoming the fear and making peace with failure is a tough task. You have to be cautious about the trade execution process and look at the long term goals. Things might seem very strange as you will lose many trades. At one point, the rookies in Singapore start thinking the CFD market is manipulated. It’s not the market but the actions of the traders for which they are not able to win.
Making peace with failure and ensuring success requires special steps. Let’s get into the details of how we can be some of the top traders in the world.
Are you ready to lose money?
Before you take trades, you need to ask yourself whether you are ready to lose money. If not, you should not take the trades with high risk or aggression. Having the ability to accept a few losing trades is the traits of the successful trader. No matter what type of financial instrument you are trading, your actions will speak for your success. If you train your mind to accept losses, you won’t take any trades with high risk. This is one of the key ways traders can limit the risk.
Find the nature of fear
The professional mentors and traders at Saxo think finding the nature of a trader’s fear is critical to your success. To deal with fear, it is important to know its nature. There are two types of fear. The first one is bringing change to your system because the method is not working. The second type of fear is the fact you may lose too many trades. To overcome such fear, education is the most effective tool. The skill of traders determines their success in this business.
Selecting the instrument
To make peace with your mind, you must know how to select the asset. Taking the trades without knowing the type of instrument you are trading is a very complicated task. For instance, if you trade oil, you should know about the major news of the oil-producing countries. Information is the most powerful thing in the currency trading business. You can’t become a skilled trader by taking the trades without knowing about the market dynamics. By doing so, the risk exposure will become higher. Based on the economic news, find a stable asset so that you don’t have to lose too much money.
Design your trading method properly
You can’t trade in a relaxed way unless you have a very unique trading method. Rookies lose trades most of the time since they don’t design the trading method perfectly. They are taking the trades without any logic and following the gut feelings. However, long term professional traders never ignore the importance of trading strategy.
Taking your steps without knowing the rules if like suicide. To ensure success, traders must take the trade with managed risk. Think about the long term goals and stick to the trading method. Forget about a complicated strategy or a successful trader’s approach. You have to design the trading method in such a way so that you don’t lose any money. Take your time and try to educate yourself about the basics of the market. Stop thinking about the winners. Focus on a simple strategy and build your confidence by taking trades in the demo account.