Losing trades are very common in the ETF trading profession. You might have in-depth knowledge about the market, still, you have to deal with frequent losing trades. No matter how hard you try, you will never learn to avoid losing trades in the market. If you want to become good at trading, we strongly recommend that you learn to deal with the losing trades in a structured way. Unless you do that, you will never become a successful trader.
Dealing with losing trades is not a simple task. You need to follow some fixed sets of rules and learn some advanced trading techniques. Now we are going to give you some amazing guidelines which will allow you to deal with the losing trades just like a pro trader.
Accept the losses
The majority of novice traders don’t have the guts to accept the losses. They become frustrated with their losing trades and try to follow aggressive steps to earn more money. If you look at professional traders, you will realize that they are good at accepting losses. They always trade with the mindset that they may have to deal with small losses even after doing the in-depth data analysis. Once you have such a mindset, you can improve your trading skills to a great extent and find the best possible trade signals in the market.
Avoid revenge trading
If you truly believe trading is the right profession for you, you should never revenge trade the market. Revenge trading is another key reason why people keep losing money in the retail trading industry. Feel free to view the website of Saxo and read the free articles on risk management. Once you gain enough knowledge about risk management factors, you should be able to understand the key reason why experienced traders avoid revenge trading. You might recover the losses by taking some aggressive steps but considering the long consequences, you are just developing a bad habit. Leave your trading station once you face losing trades in the market.
Lower down the risk factors
You need to trade the market with low-risk exposure. Unless you can trade with managed risk, you will never learn to accept the losing trades in the market. The majority of novice traders get biased and keep on trading the market with great aggression. They want to become a millionaire within a short time and they eventually lose a big portion of their trading capital. If you truly believe trading is the right profession for your career, you should never trade the market with more than 1% risk. If you trade with such risk, there is no way you are going to become good at the trading profession.
Stick to the trend
Novice traders often think they can get away by taking the trades against the major trend. If you take the trades against the prevailing trend, you are going to lose money most of the time. Even after having an in-depth knowledge of the retail trading industry, you will struggle hard to find the best possible trade signals. If you truly believe trading is the right profession for your career, you may use the demo trading account and learn more about trend trading strategies. Once you become good at analyzing the major trend, you can switch back to the real trading account. Stick to your trend trading rules and you will notice a significant improvement in your trading career.
Trade with logic
You should never trade the market with emotions. Those who are emotional always fail to deal with losing trades. They become frustrated with their actions and break the basic rules. Eventually, they increase their risk profile and lose a significant portion of their capital. Instead of trading the market with gut feelings or emotions, rely on your trading strategy and you will have no issues with accepting losses.