The most dangerous time for a trader after experiencing a huge loss.
The instinct to take revenge on the market, the desire to regain the amount of the loss was exaggerated and the heart will not be calm as long as it does not cover the loss and get the profit back.
This is very dangerous and caused by irrational decisions that will cause the amount of loss to get revenge is more severe than the loss that was earlier.
There are MC / SO and this is the bitter moment, the moment that determines whether to give in from this industry.
“Fraudulent broker! The market eats my money! That's right my friend said, trade to get this money is just a dream! ”
And the dialogue above came out to be the status of Facebook, Twitter, and so on.
Here is 1 piece of advice from Chuck Hays from an interview with Kathy Lien for her book:
"Trade for revenge is a blind trade. The risk is taken 100% using emotions. If the trading plan does not work and you try to trade to get back the amount of loss, you will lose more money. I think I have learned from previous experience that it is better, easier, and safer to regain the loss with the concept little by little. The secret is to focus on trades that have a high probability of profit and re-focus this so that profits can cover losses earlier. ”
With this calm and steady concept will prevent us from being easily depressed and the risks taken are not too great.
There are those who, when losing, start to open trades with a full margin which eventually causes the account to burn just like that. Loss right?
This strategy shows that traders like Chuck are able to stay in this industry for a long time and succeed.
Remember, change your mindset from "trade and get rich quick" to "trade without a scorching account".
After the loss, take care of your emotions, calm down. Then find the setup that he won high. Take care of MM and the account will not be MC / SO as easy as ABC.
