How to recoup in forex?
After making a highly unprofitable transaction, almost every trader has a burning, almost irresistible desire, to repel all his losses as quickly as possible. This is the most serious mistake of many traders, and not necessarily beginners, but often very experienced. Therefore, if the trader succumbed to his desire, losing self-control, then he made the first step into the deep abyss …
The problem with such a trader will be that, having gone to the “desire to recoup,” the victim usually completely loses the ability to think rationally. It immediately begins to play the strongest emotions, and they “eat up” all of his mind.
This is only a temporary desire, but these seconds of despair is usually enough to make a trader make another mistake. This is the real danger of this “desire to recoup in a fast way.”
The speculator after a failed deal, having thought badly, will make a new one. And in 80% of such cases, such a deal will be a failure. But the most horrible thing is that a trader who succumbs to the strongest “desire to recoup” can, in addition, make an unlimited number of mistakes in a short period of time.
What’s wrong with the desire to recoup?
The number of such errors and the amount of loss will depend only on how quickly this trader completely regains consciousness. And usually he will be hurt to realize the fact that because of one silly desire came so many problems.
Here are the essence of the danger of a passionate “desire to recoup.” Traders who do not have self-control (it is muffled by a sense of loss) want to do everything as best, but it turns out even worse. What does the trader do to the weak from the psychological point of view, so that this no longer happens?
First, you need to calm down. Your main enemy is emotion. Surrendered to emotion – then lost. Therefore, in the very first minutes, when the desire captures you, hold on, and pull ourselves together.
Secondly, we quickly assess whether we are in a position to continue trading now, and at the same time rationally analyze the current situation on the market. If your answer is yes, then we analyze the current market and find the point of re-entry, and if your answer is no, then immediately stop trading for the whole day (at least 5 hours), even if the hour of trading has not passed yet.
Third, consider your mistake. What is the reason for your loss. Not understanding it, you run the risk of making this unconscious mistake again …