How to Cope with Your First Failure on the Market?

Vladimir Rojas

Junior member
15 7
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

Member
55 12
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.
 

hedleyhowarth

Junior member
15 2
The element of good trading is not making huge profits but to be able to cut your losses. A trader can never eliminate the loss completely but focus should be given on reducing them.
 

pezza55

Junior member
33 7
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.
 
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IceThor

Member
97 20
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
 
 
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