Hello Crypto-world, hello traders!
Today I am sharing some worries about the difficulties when we see a lossing position doing Forex.
After thinking and trying to see the bad sensation inside me, I ask myself why this feeling so annoying inside? And while trading you are the only one to face it. Non-sense to speak about it, and less advisable in the moment of suffereing. Maybe after the experience pass it is most likely to speak about...
Well, recently I began to do Trading at the Forex area. First week it looked like I could do it as a daily income source, but it is not that easy.
Yesterday, a trade trap me. The chart shows me a very likely Buy EUR/GBP. With the elections I didn't want to put more trades, I can do till three, I am usually feeling well with 2, as more load to the account can pressure to wheter close a position, wheter to put more money (which is not my intention as the risk become bigger to lost more.
Well, my hope made me bad and I didn't stop it.
In some moment of the downside, I questioned myself why it is so painful to see the loss (but still the hope to get back) and why it is not that exciting when it happens the opposite??
I asked the AI. And the interesting point is that we tend to feel more intensely the pain of loss...
Experiencing a significant loss in a position can be emotionally challenging due to several factors:
It listed 4cpoints. But I want to retake only 2, as they are the most explaining my feelings.
- Loss Aversion: Humans tend to feel the pain of a loss more intensely than the pleasure of a gain. This psychological bias can make losses feel disproportionately impactful.
- Investment of Time and Effort: If you've spent time analyzing and planning the trade, a loss can feel like a personal failure or wasted effort.
I am realising how strong could be the factors of emotions on trading.
Managing emotions is a crucial part of trading. Using strategies like setting stop-loss orders... and sticking to a well-defined trading plan can help mitigate emotional responses to losses.
Well, I am just taking a course about Forex. And they advise to manage 1% loss in every trade. Evidently I am far of that percentage. This is making around 5 percent loss if I close it.
Still waiting to loss less before to decide to close.
Anyway, the lesson is there, even though is painful.
After some 7 years trading, at the beggining I suffered more than now. Forex was one of the first try, i left it as no way to achieve something. Now that The trades on Stock and some projects on Staking are more Investing than trading I am coming back to experience Forex. Hopefully this teach me more about the Emotion management.