Home Forex News The 4 Phases of Losses in Forex

The 4 Phases of Losses in Forex

by Allen Bright

Losses in Forex

Losses in Forex: It typically takes place that an investor is faced with numerous failures, and then gives up trading; believing that nothing good will result in it.

Nonetheless, only amateur traders act in this manner. Actual traders understand that success can be achieved only when you learn to cope with all, even one of the most serious failings. This is the law of success.

So, exactly how are losses experienced on Forex? Let’s discover.

Stage 1: Denial

This phase is manifested very first. Usually, when refuted, the trader consoles himself: “Well, it takes place, its fine. This profession was not so essential.” That is, you do not confess your shame and also, therefore, throw out the obligation for errors.

You shut your eyes to this little failing and also remain to take part in trading, trying not to stress too much.

Phase 2: Philosophy

After you have calmed yourself a couple of times, you begin to assess, think through your strategy, as well as look in it for what specifically led you to failure.

You understand that the strategy appears good, but it became not as lucrative as you believed. You appear to have done everything as it should, but there is a loss and this shows that you were mistaken someplace.

You continue to evaluate your strategy, trying to recognize where the mistake was.

Stage 3: Depression

After a long, however, alas, unsuccessful search, you start the most unsafe phase– depression. It is like a limitless puzzle without an escape. You assessed your strategy, evaluated it, however, cannot locate where you made a mistake. Your characteristic calmness has disappeared; you cannot sleep; you have no appetite.

The realization that an error has slipped right into your relatively impeccable strategy does not provide you peace. And also you accept defeat as well as start to be sad, sidetracked by various other points.

The very best solution is to grieve a day or more and go back to dominating the optimal of the Foreign exchange market. The important point is to sidetrack on your own, not allow yourself to let enter into the depths of depression for a long period; or else, it will negatively influence not only your trading however additionally your general psychological state.

Phase 4: Acceptance

It would seem that it can be more dangerous than anxiety, which is poisoning your life. Unusually sufficient, phase 4 approvals position an also greater threat to effective trading.

The thought embedded your mind that you are unable to transform the outcome. You have pertained to terms with the truth that trading is not your strong suit; it is time to do something else.


There are 2 means to accept defeat. The first means is to assure on your own that there are lots of errors and cannot do anything, which suggests you require to quit this trade right now.

The second alternative is to proceed with trading. This option is for solid people since it is not so simple to endure all problems and also tackle the same point time and again until the outcome shows up. If you ask us, the 2nd option is better. We all make mistakes. The lesson is to pick up from these mistakes and not obtain excessive sidetracked.

Read more about low latency server service.

0 0 votes
Article Rating

You may also like

Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x