Most of us like to hear people talk about winners and about how we could win. We are innately reluctant to talk about losing or think about what needs to be done when we lose. The interesting thing is that the best way to win is by
learning how to deal with a loss.

You have decided to find out how to deal with a loss and hence, you are reading this article. That is a step in the right direction. Congratulations! You are not one among the many people who never realize the importance of learning how to deal with losses.

There is no perfect strategy that wins 100% always:

Everybody goes into every trade believing that he or she is going to make a huge profit. However, that never happens because you never have a 100% success rate in this business. There is no perfect strategy or a technique which works always. Every technique or strategy fails in some cases. There is always a possibility that you’d lose and all successful
traders agree. Your aim should be to earn more than you lose while taking loss sportingly. If there is a technique or strategy you want to follow, practice it first on a demo account. There are many brokers who offer demo accounts and you can open one and practice it. Try to estimate the number of winning trades and losing trades in a particular time like a month or a year etc. If the number of winning trades are more than the number of losing trades and if the number
winning pips are more than the number of losing pips you can follow that technique or strategy.

Stop trading for that day or two, if you are losing trades consecutively:

When you encounter a loss, accept that it is part of this business and move on. Practice and avoid feeling shattered. It is sometimes wise to end the day’s trading if you are totally very disappointed and trying too hard to make a comeback. In such a state of mind, it is better not to trade. Come back tomorrow.

Remember one thing. Trading is not gambling. In gambling, when people lose money they think that they can win again in the next one and gamble again and again and lose everything. So you should not go into that situation with trading. You better stop it for some time if you are losing trades consecutively and come back after some time or after some
practice trading in a demo account.

Maintain a trading plan:

A trading plan is a plan you follow for trading like the techniques you follow, the trading hours you go in etc. Anyone who has stuck to the trading plan will not have many reasons to worry about. Lets say you have a trading plan with a technique and if the technique allows one losing trade in ten and you only lost one. There is nobody to blame for the loss and there is no reason for you to be upset. In fact, this is a balancing act and your system shall plan and make up for the loss.

Change your strategy:

There are some instances when you would have to change your strategy. You will have to do that only

a) if you are losing big

b) if you are losing very frequently or

c) if you are losing steadily over a period of time.

The question you must ask yourself if you find yourself in any of the above three situations is “Am I implementing the trading plan and strategies correctly?” If your answer is a “no”, all you need to do is practice a little bit of self control and discipline. Not sticking to the plan or taking avoidable risks can be costly.

If you have problems sticking to the plan, open a micro account and trade with 10% of your normal lot size. Keep trading without straying from your plan until you are making profit. Return to your normal lot size only after this exercise is a success.

Enroll in FOREX trading courses:

You can also enroll yourself in useful FOREX trading courses. This would be especially beneficial if it is your system that is creating you problems. Work on mastering the technical analysis. Once you have mastered it, you will be empowered to employ newer strategies while trading. You could test these strategies with a demo account. Enrolling yourself in a FOREX trading course can also boost your confidence to a large extent.

Maintain a trading dairy or trading journal:

A trading dairy or a trading journal is a kind of book you can say that you need to maintain with all the trades you won and lost and with all the information of how and why you won the trades or lost the trades. This information can be used in future trades. If you don’t maintain this, you may do the same mistakes again and again and lose the trades again and again. So always maintain trading journal and go through this information in your free time so that you remember the mistakes you did and won’t do them again.