How Do You Deal With Your First Market Failure?

If you’ve had your first trading failure, you may be tempt to give up. But keep in mind that this is a pivotal moment in your trading career. Stop right now or you’ll never enjoy the exhilaration of success again! So, if the market has knocked you down, here are some pointers on how to get back on your feet.

Accept and embrace your emotions:

You may be dissatisfy with yourself, the market, or even the entire planet, which is entirely reasonable. Don’t be frightened to feel what you’re experiencing. Allow yourself to be disappoint or upset, but then talk about it. Why are you so grumpy? Did you think you’d become the next Warren Buffett overnight? Don’t berate yourself for not being a billionaire trader from the first time you went into the trading platform. Baby-steps!

Keep your expectations in check:

Baby steps, in fact, are exactly what you should be taking. Expect to take a long time to become the next most successful trader. Instead, decrease your expectations, especially if you’re new to the industry and still learning the ropes. Your first failure is an excellent opportunity to assess and change your expectations for this new activity (perhaps without even recognizing it). To begin, look at risk-management measures.

Allow yourself time to learn from your failure:

Right now, you need to do some research. You must understand what went wrong in order to prevent making the same mistakes again. Maybe you went into the market without knowing how to manage your risk or how to understand your instruments. Have you gotten word about a certain instrument far too late? So, here’s your chance to learn and not make the same mistake twice. To prevent making the same mistakes, do your homework!

trading, loss, strategy, Milliva, forex, market
Restart, but this time uses a new method:

Great, your homework is over; now it’s time to begin on your new strategy. It’s the ideal opportunity to attempt once more — but this time without making any mistakes. If you haven’t done so already, you may begin by utilizing a trading strategy, or you can choose a new one if the last one failure. Choose from hundreds of trading methods we’ve previously covered, or come up with your own based on your own study. That’s fantastic!

Stop comparing yourself to other individuals who are more successful:

That’s all there is to it. There is no need for an explanation for failure. To be clear, comparing yourself to others will only prevent you from achieving since someone will always be larger, better, quicker, and stronger than you. That is true for all of your actions in life, but especially for trading. So, instead of comparing yourself to your old self from a few days, weeks, or months ago, compare yourself to your old self from a few days, weeks, or months ago. Are you a better informed person now? Do you have a better grasp of the market now? Congratulations if you answered yes; you’re on the right track. If you answered no, you must correct this before you may begin to grow.

Always keep in mind that achievement takes time:

You’re definitely aware that genuine success necessitates a significant amount of effort and hard work. Here are some examples of people who rose to the top after being knocked down by life. Walt Disney, the originator of one of the world’s most recognizable brands, was sacked from the newspaper where he worked at the time for “a lack of vision and imagination.” Disney attempted and failed to start various businesses before becoming one of the most inventive animation studios today.

Thomas Edison, a well-known inventor best known for inventing the light bulb, was expelled from school for being “too dumb to learn anything” and was unable to hold down a job due to his inefficiency. Even his most renowned creation required over a thousand fruitless tries before he ultimately succeeded in establishing his reputation and delivering light to the globe.

Oprah Winfrey, one of the most successful women on the globe, whose name is so well-known that you don’t even need to know her last name to recognize her, had a rocky road to success and fame. She had to deal with abusive family situations as a child, as well as multiple career problems. She was sacked from her position as an anchor at the age of 23 — the peak age for being on television – because management believed she was unsuitable to be on it.

Do you know what binds all of these folks together? Their careers would have been very different if they hadn’t failed. If they had stayed on their original route and never changed, they would not have become the individuals we know today. They succeed as a result of their mistakes and failures.

Our final piece of advice is to avoid comparing yourself to others, and we stand by it. But you can learn to have the same persistence they had and chart your own route to success – one that may be littered with errors and blunders, but will lead you to your goal!

visit us on: www.milliva.com

Books to read on Psychology of Trading

Finding the appropriate approach on Olymp Trade or another online trading platform isn’t the only way to make money. It has a great deal to do with psychology and self-control.

A successful trader must be aware of his or her strong and weak areas and maintain a healthy balance between them. We’ve hand-picked five books for this post that can assist a novice internet trader acquire key attributes and cure harmful flaws.

Regardless of your approach, risk tolerance, or ambitions, these books will be beneficial.

#1 the Disciplined Trader

This is by far our favourite book. The Disciplined Trader: Developing Winning Attitudes, by the way, is the complete title, and we can claim that the contents fit the stated purpose.

Marc Douglas, the book’s author, was a pioneer in the field of trading psychology. The Disciplined Trader has become an industry classic and a best-seller.

The book contains a wealth of incredibly important advice on how to cultivate a mentality that allows you to consistently prosper.

For a trader’s success, Mark Douglas emphasises the necessity of healthy emotional practises. After all, how brilliant your approach is won’t matter if you can’t manage your greed or fear.

Unlike a traditional educational book on trading, which is frequently mind-numbing, The Disciplined Trader is really easy and entertaining to read. Douglas is a gifted storyteller as well as a good instructor.

#2 The Hour Between Dog and Wolf 

The title dog and wolf describes the transformation of us, body, mind  while taking risk. The author refers to a trader’s psychological shift under positive or negative stress as “the hour between dog and wolf.”

Because of a winning streak, John Coates investigates circumstances when a person gets overconfident and takes too much risk. A challenging phase, on the other hand, makes him or her hesitant, indecisive, and risk-averse.

Coates explains how there is a direct link between trading performance and how our bodies and minds feel and act. These emotions might distort inexperienced traders’ judgement and lead to poor judgments that result in losses.

trading, Milliva, trading book, strategy

#3 Trading in the Zone 

Mark Douglas, author of The Disciplined Trader, has written yet another best-seller. Trading in the Zone was re-released after a ten-year hiatus. It’s a must-read if you want to identify and overcome the detrimental thoughts that are keeping you from achieving consistent profitability. This book is your chance to break free from money-sucking mental and emotional patterns.

After spending several years examining his own thoughts, feelings, and actions, as well as those of excellent and terrible traders, Douglas authored Trading in the Zone. Douglas, a well-known trade coach, had a wealth of study information.

#4 Mean Markets and Lizard Brains 

Is it possible to trust our Lizard Brain, which guarantees biological survival, when it comes to trading decisions? It’s difficult to say. Terry Burnham investigates what causes markets and individuals to act irrationally in his eye-opening book.

Why do individuals pay exorbitant amounts for some assets? What variables cause markets to go insane for no apparent reason? What primordial instincts are at the root of major stock market sell-offs, bubbles, panic, and euphoria?

Terry Burnham’s fascinating inquiry provides readers with an understanding of human and market psychology. You’ll have a better understanding of how and why your “animal ego” pushes you to do unusual things.

#5 The Daily Trading Coach        

The subtitle claims that the book will teach you 101 lessons to help you become your own trading psychologist, which seems useful, and it is. This book will be an excellent addition to your collection if you enjoy self-coaching.

The Daily Trading Coach contains all of the features you’d expect from a self-study session. It’s inspiring, simple to read, and has original stuff. Dr. Brett, as the author’s blog followers refer to him, has compiled a wealth of useful insights and methods, which he has combined with practical exercises and case studies.

Because Steenbarger combines extensive trading knowledge with a psychology background, his book will assist you in overcoming the same stumbling blocks that every novice encounters. It’s a terrific approach for a determined learner to obtain some trading knowledge at a reasonable cost.

Visit us on : www.milliva.com

visit us on

%d bloggers like this: