Pradip Kumar
It is impossible not to trade or invest and find yourself in a losing position. That’s the only way. And a major business loss can be devastating – not only financially, but emotionally. As much as defeat feels, how you react to a major loss is more important than the loss itself. Inexperienced traders incurring huge losses can get hijacked by their emotions. Some may try to trade through pain, often creating more turmoil for themselves. Some may withdraw from the market to avoid thinking about it. Others may try to ''trade for revenge'', determined to recover losses.None of these responses are constructive. In fact, they can be disastrous if you don’t learn how to deal with losing trades. Whether it was an obvious minus in your strategy, lack of discipline, or some other reason, almost every trader will face a major loss (or several) in their career. After a losing streak or large losses, you may begin to question yourself, which leads to the typical problems of many new traders, such as exiting trades too early, holding them too long, and fear of losing trades. You must put in more trades in an attempt to give up or to get a few winning trades. One of the major differences between successful traders and unsuccessful traders is how they handle trading losses.
