As everyone knows Forex market is the largest financial market in the world and the potential to make a profit in the arena attracts forex traders at all levels: from green horns to well-experienced professionals with many years of trading experience and financial experience. However, the best traders are not defined by these failures, but rather by how they deal with them. It is very important to lead difficult situations both externally and internally in order to be a successful trader.

In this article, we have listed the best habits to follow while facing this failure, learn how to handle it better and how can overcome it.

1. Be Prepared

If you are not prepared or angry and precocious or distracted from anything it’s a chance to lose your trades. How do you feel? Did you get enough sleep? Do you feel the challenge ahead? Many traders have the magic of the market and they are ready before the day starts. Create something that puts you in the trading zone. In addition, your business area should be free of distractions. Remember, this is a trading and distractions are expensive.

2. Manage your expectations

3. Take your time to learn from mistakes

Research is what you need at the moment. To avoid repeating mistakes, you need to know what went wrong. Maybe you entered the market without managing your risk or learning about your instruments. Did you receive the news about the specific instrument way too late? Well, here’s your chance to learn and not make it again. Do your homework to avoid repeating mistakes!

4. Back test your strategies

While we can never predict what the market will do, we can make efforts to ensure that our reactions to an unpredictable environment do not overwhelm us. And one of the most effective methods to do so is to establish trust in our trading strategy or system. So, if you’re just starting off, how would you obtain this vital confidence? If you’re a new trader, you probably don’t have enough expertise with your approach to feel secure about executing trades. This dilemma, however, has a workable solution.

Backtesting is the general method for seeing how well a strategy or model would have done ex-post. Backtesting assesses the viability of a trading strategy by discovering how it would play out using historical data. If backtesting works, traders and analysts may have the confidence to employ it going forward. Backtesting your strategy will give you a good understanding of your strategy metrics. You can evaluate how your trades have performed in a specific market environment, the average win percent, the average win to loss ratio, the maximum drawdown, and the string of winning and losing trades. Keep in mind that past results are not always indicative of future results. When you’re emotionally fatigued from a losing streak or a losing phase, knowing these metrics will come in handy.

5. Stop comparing yourself to other traders

6. Start again with Different approach

Most traders only look at one element — the external — and decide that is the reason for their failure. And they continue to make the same mistakes — not having a system to pick the right market, no specific method for entry, trailing and exiting, no sense of how to arrive at quantity to be traded, when and where to book losses etc. These are the real errors that keep repeating and it doesn’t matter how many advisers and brokers and software and time frames traders trade with.

So it’s the perfect time to start and avoid major mistakes. Start with a new trading strategy and check the strategy of previous one which is failed. Choose from hundreds of strategies which are available online or create your own based on the research you’ve. Good for you!

Conclusion:

As an trader, you are going to face a lot of failure. If you are looking for a safe life without many ups and downs, or you have a hard time handling failure, then starting a trading might not be the thing for you. Setting your expectations effectively and knowing what you are in for will help with the challenges. Mistakes aren’t just one big blunder. Instead, they’re a series of little choices that lead to failure.  So pay attention to your errors, no matter how big or how small they might seem. And recognize that each mistake can be an opportunity to build mental muscle and become better. Open account and start trading.

Happy Trading!