“A smart investor enters the market when others are feeling negative about it and the value is lower than it’s intrinsic value”


“A smart investor enters the market when others are feeling negative about it and the value is lower than it’s intrinsic value”

How to handle a losing trade? Things to do after a losing trade

The only trader that will never lose is the one that will never trade.

All traders have the losing trades.

You can still have a profitable trading career even if not every trade is a winner ( How to manage winning trade? ).

The moment you lose a trade and see some of your equity vanish is probably one of your most emotional and irrational times as a trader.

That’s why it is very important to know what to do in order to prevent even bigger damange.

 Take a break

No matter the outcome of a trade is a win or lose, you have to take a break to calm your emotions down.

After a win, you will fill euphoric while after a losing trade you will feel desperate.

It is very important to shift your focus toward the next trade opportunity.

Do something non-trading-related even if it’s a tiny task for a couple of minutes.

Stretch, listen to your favorite song, read the book.

The goal is to clear your mind and come back ready to execute the next trade when the opportunity arises.

Don’t take it personally

In any moment, the price can go in either direction.

Sometimes it will be a fundamental impact that can happen out of the nowhere.

No matter if it was your mistake or not, do not take it personally.

If your last trade was a loser, it doesn’t mean that the next one can’t be a winner.

You can have a losing day but a profitable week.

You can have a losing week but profitable month.

Instead of equating a trading loss with personal failure, shift your mentality for what a loss means.

Does it mean you’re stupid? Not necessarily.

Does it mean you were wrong? Yes, in at least one way.

Does that mean you will never get it back? Absolutely not.

Learn from losing trades

After a losing trade, the last thing you want to do is studying the mistakes you made.

The only thing you want is to make it back.

Wait, you will make it but only if you focus on the right process.

The journaling every trade is essential. It doesn’t have to be so complicated.

Write down the reason you are taking the trade together with the screenshot of the chart.

That’s going to be the data the will be priceless in the future.

By studying you last trades, you will spot the mistakes you were making and be able to change the strategy you are using that will ultimately lead to an improvement in your trading performances.

We can recommend online journal software that helps you journal your trades quickly. 

Not only that it will journal your trades, but it will also analyze them and help you improve the strategy. 

You can find the journal by clicking here.

Stay focused

One losing trade won’t endanger your account unless you went all in.

If the setup you were trading led to a losing trade, it doesn’t mean you have to change it.

There is no pattern with 100% accuracy.

There will always be a loser.

What you have to do is to make sure that you have all your trades journaled so you can see the performances of your trading strategies.

If you are trading strategy that is leading you to the losing trades over and over again, it is something you have to work on.

The first thing you have to do is to analyze previous trades and try to find the reason.

You have to update the strategy and try again.

If it keeps making you lose, change it and continue trading with your other strategies.

Nothing should stop you from your main goal.

Losing streak will happen sooner or later.

It is important to accept it, learn from it and step up.

Consider losses as a cost of doing business as a trader.

Every trade will bring the risk as well as the opportunity.

The risk is the price you are paying for the opportunity and it sometimes you will have to pay that price.

If you want to learn more about trading, we suggest you our FREE trading course with more than 65 lessons that covered all aspects of trading.

If you want to find out more, click here to get direct access to the course.

This Post Has 2 Comments

  1. thanks guys for the course

    1. Your welcome!
      It’s time to apply the things you’ve learned

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