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Losses are inevitable in trading. It could be due to a technical glitch in your system, a sudden price reversal or maybe just a sustained bleed in your trading capital. Every successful trader has suffered losses at some point in their career.
Recovering from these losses takes time. In the aftermath of such events, we start to question our judgment of the market. Typical problems arise, where we either do not trade out of fear or get out of positions too quickly. But, things do get back on track. With discipline and focus, we can get back our lost confidence.
Stop Trading After a Loss
If you have suffered a huge loss, you need to stop trading temporarily. Continuing trading could increase the chances of incurring further losses since emotions will be stronger at this time. You mainly want to avoid a situation where you make the same mistakes, and your account gets completely wiped out.
When we have a losing streak, we often suffer from feelings of revenge, anger, self-loathing, frust...
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