The frustration a forex trader experiences after losses and even huge drawdowns can be hazardous. That can result in self-doubt, lack of confidence and poor decision-making. With the competitive nature of traders, you need to know how to deal with trading frustration.
Here are 3 ways to deal with trading frustration.
1. Do not blame yourself
To bounce back from a loss can be hard. For some, they target their frustration at themselves and engage in negative self-talk. If you are now in that situation, then, you need to stop.
There is no point in blaming yourself for being unable to predict what will happen to your trading.
There is nobody, not even the brightest economist or the hardcore number crunchers, knows for certain what the market’s next move will be. What you need to do, then? You just need to accept the loss.
Just pat yourself on the back for managing your risk, take note of the lessons learned and move on.
2. Do your homework
Now, after your loss, of course, you have found your lack. Then, you need to focus on improving yourself on that aspect.
Besides that, you need to also conduct fundamental and technical analysis. With those, you will less likely encounter that same frustration, again, in the future.
Other than those, you should not forget to plan your future trades and decide your action steps for various potential market scenarios.
3. Do not give up on the trading strategy
Most of the traders usually just throw away their initial strategy every time they encounter frustration. Sadly, that is a wrong move.
Also read: How to Bounce Back After a Trading Loss
You need to remember that the market environment is constantly shifting. Therefore, the consistent profitability can be reached if you stay disciplined, while still following your tried-and-tested trading plan.
If you found strong evidence that your current strategy did not work, you need to try conducting backtests or refining your approach instead of giving in to frustration and dismissing it altogether.