In the trading industry, winning and losing are commonplace; whether you are an experienced trader or a novice, losing trades will inevitably come to everyone. However, when faced with sudden losses, how to properly handle losing orders largely distinguishes one trader from another. Today, let’s talk about the topic of losses—how do excellent traders handle losses?
1. Set a reasonable stop-loss position
When facing order losses, the first important consideration is to execute stop-losses effectively and logically. The stop-loss position should generally be decided before placing the trade, rather than hurriedly considering it after the loss has occurred. Once the trade position shows a negative value, the trader will inevitably experience emotional fluctuations to some extent, and sometimes may set unreasonable stop-loss lines out of fear. Only a stop-loss position that is determined before placing the order is the most rational and logical.
Two, promptly summarize the reasons for the loss.
After our trades are stopped out and faced with the loss numbers in our account, the first thing we need to do is analyze and judge whether this trade aligns with our trading strategy, whether my previous technical analysis was rigorous enough, and if there were any market details that I overlooked— in short, summarizing the reasons for this loss. If, after rational analysis, we find that there are no flaws in the trading decision, then this loss is a normal loss, a necessary cost of executing the strategy. On the contrary, if post-analysis reveals that there were shortcomings in this trade, then it is necessary to promptly keep a trading record and constantly remind ourselves not to make the same mistakes in the future.
Three, promptly adjust your mindset and engage in healthy and positive mindset construction.
Based on my past trading experience, over 80% of psychological issues arise after a losing trade. Whether one can promptly adjust their mindset after a losing trade will become the last dividing line between excellent traders and mediocre traders. After a losing trade, traders inevitably experience feelings of sadness and self-blame. To quickly free themselves from this unpleasant mental state, most people will want to make up for their mistakes and recover losses as soon as possible. This will lead to their next trade being affected, making it difficult to make objective and rational judgments, and becoming more aggressive than usual. However, this psychological state will further trigger losses, leading to a vicious cycle—many experienced traders also experience significant losses, often influenced by this psychology. Therefore, after a loss occurs, temporarily distancing oneself from the market, engaging in other distracting activities, practicing meditation to refresh the mind, etc., can effectively help us promptly adjust our mindset and ensure that each trade is the result of independent thought.
Experiencing losses and making mistakes in trading is not scary; what is scary is remaining indifferent after experiencing losses and mistakes, paying tuition to the market without learning knowledge or lessons from the losses. The path of trading has no end; learning from failure is essential for growth.#ETH走势分析 $ETH
