How to Cope with Your First Failure on the Market?

Vladimir Rojas

Junior member
If you’ve suffered your first loss trading, you may feel like giving up. But, remember, this is a turning point for you and your trading journey. Stop now, and you will never feel the rush of victory! So here are some tips on how to get up if the market knocked you down.
1. Embrace your feelings
You might be feeling disappointed in yourself, in the market, and even in the whole world, which is completely understandable. Don’t be afraid to embrace these feelings. Let yourself be disappointed or sad, but then address your feelings. Why are you feeling this way? Don’t judge yourself for not being a successful trading millionaire from the moment you stepped onto the trading platform. Baby-steps!
2. Manage your expectations
Do not expect to become the next most successful trader right away. So instead, lower your expectations a bit, especially if you are a beginner and still figuring out the market. Your first failure is the perfect time to evaluate your expectations for this new activity and adjust them. Try researching risk-management strategies as a start.
3. Take your time to learn from mistakes
Research is what you need at the moment. To avoid repeating mistakes, you need to know what went wrong. Maybe you entered the market without managing your risk or learning about your instruments. Did you receive the news about the specific instrument way too late? Well, here’s your chance to learn and not make it again. Do your homework to avoid repeating mistakes!
4. Start again — but use a different approach
It is the perfect time to try again — but without errors. You could start by using a trading strategy if you didn’t have one before or pick a new one if the previous one failed. Choose from hundreds of trading strategies we’ve already written about, or create your own based on the research you’ve done. Good for you!
5. Stop comparing yourself to other — more successful — people
Comparing yourself you others can only stop you stop from succeeding because there’s always going to be someone bigger, better, faster, and stronger. That applies to all of your activities in life, but trading especially. So, instead, compare yourself to your old self from a few days, weeks, or months ago. Are you more knowledgeable now? Do you have a better understanding of the market? If the answer is yes – great, you’re moving in the right direction. If your answer is no, you need to fix that to start growing.
6. Remember that success takes time
You probably know that true success takes a lot of effort and hard work.
Failure. Quora and Reddit.png
 

HeavLeighGill

Active member
Good points! I struggled with this in the beginning of my trading career, wish I would have thought of all this then as it could have saved me a few losses in the early days.
 

pezza55

Member
Good advice there. I have found it is really important to take time away to reflect on your losses. You will never win them all and I think it's important not to dive straight into your next trade as it could become a downward spiral.
 

IceThor

Active member
Good advice there. I have found it is really important to take time away to reflect on your losses. You will never win them all and I think it's important not to dive straight into your next trade as it could become a downward spiral.
not with that attitude lol
 
One thing I've learned is to also diversify your portfolio and not put all your eggs in one basket.

I'm a big crypto fan so I have a bit part of my holdings in digital assets. I also just got into $BTCS since they're in the crypto + stock market as a whole.
 

kevinberry

Junior member
‌When a trader starts their trading journey, they must be prepared for the ups and downs the market will get in the form of profits and losses. You have to mentally prepare yourself that your beginning would be full of losses and if you really want to keep trading, you must start trading with a small amount.
 

Farm Yard Forex

Well-known member
If your first loss I wouldn't say necessarily change anything if you followed your plan precisely. Sometimes a good trade can still lose and a bad one win. You need a greater sample size to know if the trading plan itself is at fault.
 

sharabela

Active member
Thanks for this excellent motivational post. You have made some good points. I like the last one most, which says success needs time. We must give us enough time to be successful in the Forex market.
 

momo3HC

Well-known member
I think a trader should always be prepared and open to a loss. We all know that sometimes the outcomes are so random that even with all the practice you can’t avoid the loss. These failures hit hard but it is important to react positively. If the loss is too overwhelming, you should take a step back. Utilize this break to recover and analyze what went wrong. This will help you to improve yourself.
Absolutely. We can`t win them all. And because of this, like i said, it`s very important to not risk what we can`t afford to lose.
 

IceThor

Active member
Whether it’s trading or life, the first thing I do when things go against me is “to accept”. Acceptance comes before everything else, it’s the first step towards the right action. If you’ve lost, accept it rather than finding reasons to justify your loss or blaming it on something else or just ignoring it. When you accept your fault, you are able to look at the bigger picture and correct what’s gone wrong.
Well put.
 

IceThor

Active member
It’s a bad idea to even think about jumping back into the market immediately after you have made a loss. Such trades are just an outcome of your emotions that were hurt after the loss and you won’t just be trading but would be taking an emotion triggered revenge to recover your losses. And these are the opportunities that shark traders keep looking for.
It’s best to release emotional stress. So go out and take a break. Don’t trade again until you have found why you lost.
100% this!
 
 
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