Trading Forex is a risky business. When we trade, we must acknowledge that we can win but also that we can lose money.
Don’t feel bad about yourself if you’re losing money in Forex. This happens to us all… And the best way to deal with it is just stop. Stop trading at once… Don’t keep trying to get the money you already lost into the market when your emotions are so present. If you continue, you’ll end up broke…
Emotions can be really tricky and only experience will help you with them. Not only by controlling them but also by preventing fear and greed to show and take your part of the profits.
Now that you stopped trading, check out what you’ve been doing. If you’re using a manual system, are you following it exactly like you were when you were making profits? Did you start to trade different currency pairs? Are you following the stop loss and target rules? If you’re using a robot, did you change the inputs of the EA? Are you using a different time frame?
Analyze all these things deeply. It may be the system that isn’t already performing well, or it may be that you’re making some changes to the system, even if you didn’t realize you did them, because you’re reacting to fear or greed…
When you finally get to a conclusion about what is happening, it’s time to fix the situation.
If the problem is that you’ve been “modifying” the system rules due to fear or greed, you need to find a way to relax and to control your emotions. When you notice that you’re being involved by your emotions, if you’re feeling anxious or nervous, and you’re not acting rationally (like when your stop loss is reached and you don’t close the trade, or when the target is reached and you don’t close the trade because you want more profit, or even if the system you’re using just gave you an entry point and you didn’t enter the trade), stop right there. Take the day off. You can trade Forex almost every day. Why trying to do so if you’re not with the right mindset?
Please remember that we all, as Forex traders, have wins and losses. We all pass through losing and winning strikes. Every trader has losing strikes but not every trader can deal with them. And we can all pass these situations by keeping the calm and being rational. And the best advice I can give you is that we’re constantly learning.