Ask any expert crypto trader and they will tell you that losses have been a part of their regular trading day at one point. It may be sudden or gradual, and may last well beyond an interval that’s normally expected. As the economy is an unpredictable environment, you might be subjected to an inordinate amount of stress arising from anxiety and doubt to meet the demands of the financial terrain. Those who have experienced a bad period in their market trades have no other choice but to stand up and lift themselves from the slump they are currently in.
For those who have spent a considerable time in the crypto trading arena especially with brokers like eToro, there are two kinds of losses that they often experience. The first type has something to do with the law of probability. Even if you follow a strict set of methodology that you have laboriously concocted, there is still the probability that you may undergo losses. What to do when it happens? Cut your losses quickly. How? We’ll get into that in a while.
The second type would probably hit you hard in the gut: introspection and being honest to yourself. Was there a chance that maybe you have ignored your business plan and have exhibited a bad judgment while you’re at it? If the answers to both questions is ‘Yes’, then it is this very attribute that you need to minimize.
What one needs to understand that even if there is a perfect trading system, you may still incur losses. There are available approaches that you can learn, and not totally sacrifice your confidence when you trade. Remember to stay focused and be proactive. Here are some steps that you can consider to survive a loss:
Slumps are not that bad.
If ever you committed a mistake, there’s no use in castigating yourself about it. Let's say you even tried to know everything about crypto trading and you even spent a lot of time reading this eToro review at wikitoro.org but still incurred losses. The most important thing to remember is learning from it, and identifying the factors that could have contributed to what went wrong. It is learning amidst adversity, a chance for personal growth. The beauty of these kinds of situations is that you overcome these challenges and work your way through it. Keep yourself afloat by having the right attitude and not succumbed to a downward spiral just because you have one trade that went bad.
It helps to relax…even for a bit.
Prior to a business exchange, the frantic hammering of your heart against your chest is understandable. But, what’s even more exciting about this situation is the possibility that you can control these nervous tendencies right at the onset. Feel your anxieties ebb away through a routine of breathing exercises. Try to close your eyes and focus on a blank white or purple background, depending on your preference, and feel yourself start to relax. Each of us may prefer one thing over the other. So, find one that works best for you. You may use self-affirmation and guided meditation to find your center. You might not notice it, but you will be on the road to recovery in no time.
Evaluate the Trade: Reinforce Correct Behavior
Once your session with an online broker is over, ponder on the events of the day. Keep a file for your successful trades, as well as the ones that are on the breakeven or losing side. This way, you can use this file as a reference for a well-executed trade and those where you need to minimize the risks. Go back to these notes every now and then. Were you able to read the market signals correctly or misread the signs? Did your plan workout exactly as you envisioned it?
Focus more on how you trade and not on the outcome
It’s important to take it slow and steady. Consider more time spent on how to minimize risks than focusing on the amount you can withdraw from a successful trade. Look at the economic indicators carefully before you go for a live buying and selling session again. Platforms usually offer these features to its customers. And of course, you can go back to practicing on simulated or demo accounts to go over your trade ideas.
You can always take a break…and still go back to it.
One insight that you can get when you experience a slump is that you can always take a break and get your bearings. Is there something in the way you trade that needs to be corrected? If there is, then you may consider stopping and breaking the cycle if you are having a string of unsuccessful ones. If your state of mind is riveted with insecurity and indecision and governed by the all-too-human emotion of anxiousness, then you may want to take a break from it all. You can still go back anytime when you have rediscovered your priorities in crypto trading.