Manage Losses Effectively by Dariusz Swierk & Szymon Sypniowski
How do the best traders cope with losses, what methods do they use, and how do they survive the inevitable losses without negative side effects? We’ll take a look.
“I had a series of severe losses and to this day I cannot pull myself together.” With these words, an investor described the difficult period he was going through. Life events had been causing him more stress than usual and then on top of that, he experienced a series of losses in his trading. As a result, he was unable to return to the market. He would sit at the computer, watch clear signals appear on his monitor, and yet be unable to open a trade.
During a subsequent conversation, he took out a thick binder full of color printouts of the market. He said, “Had I entered a trade today, I would have earned a lot. I am analyzing the last few weeks to see how much more I would have gained in the account. My wife laughs at me and says that I am a ‘demo investor.’ She has already accepted that I sit in front of the monitor for hours and do not trade.”