Taking consecutive losses in trading has led to a lot of blown accounts.
Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.
I have read Dr. Elder's book and he always has a 6% rule. If you trade continuously but the entire order is at a loss, your account number has decreased by 6% then he advises that we should leave the market briefly. The first is to stabilize the mentality and look back on your mistakes. Then review your trading system and correct those mistakes. When the psychology stabilizes, we return to the market again to trade.Losses affects us psychologically and doesn't make us think logically.
Just wanna know how you get yourself back in right state of mind after taking a loss or better still, how do you handle losses?
Share your experiences and techniques, this will be helpful.