Have you ever had a series of losing trades?
In a sense, you go in one direction and the market turns in another. You try to exit a trade and enter again only to have the market correct your previous position, or you have had a series of losing trades and you start to doubt your confidence in analyzing your trades.
I think almost every trader has run into this problem at least once while on a losing streak. Even now I still face this problem when the market behavior is unpredictable. During that time, I mostly focused on minimizing my losses because if I had money, I could get it back when the market was predictable.
I am here to share some experiences of how I mustered up the courage to start trading again. And what action should we take when I find myself in this situation.
1. Take breaks and never trade retaliatoryly: It is important to take breaks away from the market to avoid trading emotionally or having a predictable market situation. Sometimes the market seems volatile and completely unpredictable. That's why we faced multiple losing trades. So we should wait for the right time to start again.
2. Learn from your mistakes: When you are facing this critical moment, you must accumulate some experience and learn from your own mistakes. You should change your investment strategy, because every time "buy low and sell high" won't work in the short term.
3. Choose the best trading pair: Sometimes our target trading pair may not be suitable for us. So we can choose most potential coins or tokens. We should avoid highly manipulated cryptocurrencies and should trade with top ranked cryptocurrencies.
4. Set stop loss and take profit: Sometimes we can't control our greed and wait for more profits. So when we want to make a profit, when we want to minimize the loss by increasing the stop loss, we should have a goal. Because minimizing losses is one of the most appreciated jobs in trading.
5. Build confidence, don't get frustrated: A few failures can get you down. So it's hard to make the right decision at this time. Therefore, we must develop confidence and trust in our analysis. So, get ready to do a solid analysis and enter the market again without making any emotional decisions.
6. Consult with professionals: Professionals have their own set of trading systems. The reason why they can succeed is not luck, but their strict implementation of their own trading strategies. Knowing more about the successful analysis logic and trading strategies helps to establish their own trading systems.
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