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7 Steps to Recover From a Big Trading Loss

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7 Steps to Recover From a Big Trading Loss


A majority of traders will experience a significant trading loss in their career. This is most common when traders are learning the trades. However, it can happen later if they get too confident.

Stop trading after a big loss and review your process. Then, make adjustments. After making the adjustments, trade small until you are ready to take on your full risk per trade. 

Let me now break it down into seven easy steps you can follow.

Table of Contents

Step 1: Take a break from trading

Step 2: Accept full responsibility

Step 3: Review Your Trading Journal

Step 4: Identify the specific issue(s).

Step 5: Create Specific Solutions

Not having a tested trading strategy

Move the Stop Loss

Take too much risk in one trade

Do not follow the rules of your strategy

Adding more positions to a trade

Trading too many markets/trades simultaneously

A written trading plan is not required

You must work on your Psychology

Step 6: Restart trading, but keep it small

Step 7: Track your results

Final Thoughts

Step 1: Take a break from trading

A major loss can be very stressful.



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