It is very easy to join this mysterious Forex market. You can just invest the money and start trading.But the real question is survival.Because if you have a lack of experience anddecision-making ability, you will face one loss after another, and you will be dropped out of this market.
So, you have to trade in the market through a proper trading plan, strategy, and research.But even after thousands of plans or preparations, it is not impossible to experience a big loss due to a small mistake.Instead, the loss is more normal than the profit in this market.
Many traders set a stop loss (SL) to minimize the amount of damage.They placed a SL order of 2% to 3% of their total capital.So that even if they lose, they do not suffer from a great loss. The problem, however, is when they trade without setting up anSL due to self-confidence or emotion and make big losses.Or assume that the price will increase, so they buy a lot more.But later it is seen that the price has not increased instead it has gone down.And these mistakes are made not only by new traders but also by skilled and experienced ones.
Forex’s loss is natural, but the successful traders recover it with their determination, skill, and strategy. However, recovering losses is not at all an easy process.
Why is it difficult to recover the loss?
Recovering small losses is not something difficult. If you invest $100 and lose $10, it should not be counted as something to be considered. It can be recovered very quickly. We are talking about big losses. What if you lose $6,000 by investing $10,000?Is it easy to recover from this loss? If you do not make a 150% profit, you will not be able to cover this loss in any way. And 150% profit in ETF trading is like a dream. Visit this link https://www.home.saxo/en-sg/products/etf and know more about the ETF trading business. It should give you a decent idea why trading is so hard.
However, if you trade to recover that huge loss, you are likely to make a mistake again, which will lead you to make another drastic loss. So, experts suggest if you make a big loss, forget it and start again with what you have. This may not bring you heavy profit but will not make you lose similarly.
How to recover the loss?
- Do not try to recover the loss: The first condition to recover loss is to refrain from recovering loss. Because as I said a little while ago, if you trade from trying to recover from failure, you will always feel pressure in your brain. Which will force you to make mistakes, and mistakes will push you towards loss.
- Stick to the previous strategy: You will continue to trade in a disciplined way, with proper plans and strategies. By managing risk as before, you have to trade with the expectation of small profit. If you develop a new plan or strategy now that you have made a big loss, there will be many chances of going wrong. But now, there is no chance to make a mistake. So you can continue trading by editing the previous plan and strategy if necessary.
- Take Leverage
However, if you are confident and think that you have realized your mistake and this time you will win if you trade, you can leverage your broker. However, the risk to reward ratio, SL, and other risk management steps must be done in that case. Because this time there is no chance to make a mistake. If you make a mistake now, you will not be able to stand up. So, our advice would be to go ahead with less investment, less profit, and avoid the leverage. But if you have to take leverage, you must make sure that you will make a profit this time.