It is human to experience various emotions after losing in forex trading. Depending on one's personality, one may suffer from anxiety, anger, panic and whole gamut of other emotions. Some traders overreact to the market after a loss and commit more money, even double the amount they lost in a bid to revenge to recover the loss. They may make mistakes and sink deeper into loss. Forex trade demands one to step back from the situation and perform a cool analysis of the situation in order to make sound decisions.
It's actually not cofined to forex trading but any kind of trading involves emotions. As they say in the trading hall, it is not for the faint of heart because you need to be daring and not be emotional. The market is sometimes good but often harsh so the atmosphere in the trading floor is one of antagonistic. With the investors, it is not good to be hot and think of vengeance. Getting even after a loss is hard to take but the best advice is to cool down and gather your wits before plunging to another investment.
I agree with everything that Corzhens said. Investing entails a lot of risks and rough times. If a person gives in to his/her emotions easily, he/she could end up in the losing streak. It is still best to stay calm during highs and lows of investing to avoid mistakes in decision making. Oftentimes, high emotions lead to drastic decisions that could cost a person his/her fortune.
This is a pretty basic mistake. You lose, so you take bigger risks than you have originally decided to take in order to cover those previous losses. And of course with high risk, you'll probably end up losing again.
Often occured like that, after suffering with loss then trader being emotional and appear desired to revenge and want recover previous loss at short time, usually will faced again with next loss, because actually trader can't defeat the market and with revenge it will only harmful account eventually.
Emotion can cause great problem in trading. Because taking decision emotionally can lead the trade into the loss. Technical decision is far better than emotional decision. I don't give importance to emotion while I trade. My broker Tpglobalfx is also help me to take decision technically. It prevents me from taking decision emotionally. I like them because of their low spreads, dynamic leverage and easy decision making tools.
The key is to understand how it really works and who is right to work with. I was losing funds to a broker and by the time i realised it, i had already lost $52000 which was over half of my savings. I met a friendly trader and she directed me to the recovery agent Mr Bart Kasch. He helped me recover all my money, every penny. Referred him to friends and colleagues already, you can contact him if you need help at [email protected]
