Forex: How To Handle A Series Of Investment Losses

Investment Losses:  Everyone hates to lose and unfortunately no one has been blessed with the ability of foresight, therefore Investment Losses are an unavoidable part of trade. When we enter a trade we’ll have right or wrong, and even if we reach the level without deficit qualify us as people without reason – as nobody enters into a trade just to reach the level without DEFICIT! When unsuccessful traders find a series of losses begin to take part in self-destructive patterns that help them avoid pain they are experiencing.

Bring to light these self-destructive actions that can help you realize what you are doing before they catch their physical health. If you are already involved in these models I hope this article can help you get back on track as soon as possible.

What are the destructive patterns?

If you are gripped in a series of losses or a week / month of bad conduct sure to monitor their behavior. It is during this time that will be at their most vulnerable. You will begin to enjoy the activities that at first glance seem harmless, but excessive use (or time), begin to cause physical harm to your health.

Ask yourself the following question: during periods of decreased I am too devoted to these activities:

  1. Is lunch (especially junk food – eg chocolate, ice cream, chips)?
  2. Does sex (includes seeing pornography)?
  3. Alcohol?
  4. Are drugs (including excessive smoke)?
  5. Does laziness (find it difficult to wake up in the morning)?
  6. Entertainment?

All the above taken in excessive doses can be detrimental to your own physical health (some even in small doses). These past activities during the period covering only losses pain oppose the real question, and your body tries to eliminate the emotional pain trying to “fix” it with physical pleasures. ¿Unfortunately going about it the wrong way, so what should I do?

The first … UNDERSTAND WHAT YOU ARE DOING AND WHAT!

He must realize what you are doing and have to stop right away! You can decide to stop, or be forced to stop when his body finally breaks down and prevents any movement. It will be much more beneficial for you in the long run if can decide to stop * NOW *.

Once you stopped you have to figure a way to solve the pain – no cutting or neglecting him, but staring in the face. Take your problems to light, be honest with yourself. It can be no growth without pain; experiencing emotional pain, now is the time to find the error and therefore growth.

Start Your review

The review process begins in two separate areas: You & Your System. Here are some checklists for you to find where the problem could be:

CHECKLIST OF “YOUR SYSTEM”

  1. Does your system was tested thoroughly before I trade it (or paper traded if it has the ability to program your system back testing software)?.
  2. What has been tested with data outside the sample?
  3. Do you at least you have a system? If not, how do you know if the method you are trading is even profitable?
  4. Is it correct code your system?
  5. Have you optimized your system? (What we have discussed overindulgence?)
  6. Have you traded your system on paper before placing capital on it?
  7. Did you trade with a small amount of capital before placing the rest of your money in it?
  8. Do you know the limitations of the system?
  9. Do you teach your system correctly? (Read our article you blog about why I am the system designer from hell)

CHECKLIST “YOU”

  1. Is the current decline exposing your normal system?
  2. Do you feel comfortable with the results of the historical decline of your system?
  3. Are you aware of the risks involved with the system and (the) instrument (s) that you are trading?
  4. Are you trading with funds that you feel comfortable risking?
  5. Are you relying too much on your results?
  6. Have you set realistic goals?

As you can see there are generally two areas that have to explore: the mechanical aspect – your system – and the emotional aspect – you. Both may be responsible for how you feel. It will be an error in the system side with how the system was tested and / or programmed, or can be your own psychological profile not being comfortable with the results of the system.

Your Answers = Change = Your Growth

What steps should we take now? We have now begun a corrective process where we stopped the evil nature of our ways of overindulgence to take control should continue our “corrective nature” invoking our findings and taking measures to correct our mistakes.

If the problem was mechanical – fix it, if he were emotional problem – establish new patterns of thought or change your current system. The answers are in if you need to expand your knowledge in the development of the system, or you have to grow emotionally as a person.

Unfortunately there is no easy way out, and even if there were each would. We hope this article has made you reflect on some ways of their behavior during periods of decline, be sure to keep an eye on yourself and as always you take care of your body, because there is no consensus in making all money in the world when you have the physical ability to enjoy it.

NO COMMENTS

LEAVE A REPLY