The desire to win back - a sure way to lose a deposit
How often have you had the desire to win back?
The most ordinary day of a trader
Let's think back to your most ordinary day, perhaps one of your recent days when you were trading on You have a lot of trading to do, on the stock market or other financial instruments. Suppose you usually make several trades a day and your trading session started out very well. The market went your way and you exited the trade, earning a few dozen pips. On a pullback, you entered again and earned again.
The mood is great! You should be, you've already earned a few hundred dollars. You're thinking to yourself, "What a great thing! It's so easy to get richer by such a large sum at once. And you start thinking: "If this goes on, I can get rich quick, quit my job," and now you're thinking about what to buy with the money you earned. Something that you've wanted for a long time, but somehow it didn't work out. "Well, now my life is sure to change," you think. And then a small price pullback occurs, and you decide to enter the market again in the direction of previously opened deals. The market has been going in one direction all day anyway.
And, as is usually the case, the price, having wavered a little, begins to go stubbornly against you. And what is most offensive, practically completely eats up all your profit, which you have honestly earned with your mind today. You are afraid that you can lose the whole day's earnings. And by an effort of will, because you do not want to accept losses, you cut off losses.
There was still $70 in profit for the day. And happiness was so close. You're thinking, "No, I'm going to get it anyway.I will still win back and finish the day with a profit, well, not less than 250 dollars!
What happens then?
And then, as a rule, the following happens: you make several ill-considered entries into the market. And the market, to put it mildly, is "not good", it does not go at all according to your scenario. And it's good if you've put stop loss and he cut off the losses, and if you don't want to accept the losses, they keep growing. And then there are two options: either you still get out of the deal, but with very large losses, or you lose the deposit completely.
The desire to win back or the mental attitude "I must win back" - this is a sure way to lose a deposit.
When this desire arises, the worst thing is that when you start trading, you make ill-conceived trades, taking foolish risks that only aggravate your situation and make you act even more desperately and foolishly.
If you make a losing trade, you have to understand that something is going wrong. It means the market has changed. Losing money should make you more cautious and make you trade very carefully. However, in addition to excitement and pride you have a sense of diminished dignity: "How is it that I was wrong in the forecast?!". In our minds, we always think we are very smart and always right. But results are the main criterion for success.
What can you do about the desire to win back?
The first and probably the most important thing is RecognizeThat you have this desire. And admit it to yourself.
The second is to stop trading abruptly. That's it. Stop. Close the terminal and go for a walk outside or do something else.
At first the desire to win back will not disappear, but rather quickly pass. The main thing is that you will not make stupid and ill-considered positions.
Make it a rule: after three unsuccessful trades, take a break in trading for a day or two, analyze what happened and why, and only then start trading again.
I wish you the best of luck in trading!