How to NOT quit Trading and Win the Money Game?

It’s a bitter but true fact that 95% of people quit trading midway. Either the stress takes a toll on them or they simply cannot handle the losses. Atleast once in your trading journey, you must have thought of quitting, even I have, but is it the right thing to do? Is it correct to abandon all your dreams and knowledge, and turn back to less risky and peaceful life? Let’s find out

Quit Trading

The fact is, you signed up for this stress when you decided to explore financial markets for investing your hard earned money. And, if you aren’t making any progress in your trading spree, inevitably that’s going to take a toll on you. Stock market losses or any kind of financial loss won’t serve you with hot dogs in neat wrappers. So, you finally give up and quit trading.

But maybe before you take the final leap that would take you into the ultimate plunge of nothingness, you could try cracking your problems and see if your rationale about quitting trading for the wrong/right reasons can be tackled.

Let’s explore some proven methods to sustain in this over competitive trading environment:

Plan to Recover your Losses

Recovering from losses isn’t an easy task but preventing losses are way easier. And while that may not always turn out to be successful, there is no harm in trying to learn and implement Risk Management, Asset Allocation, and Position Sizing. Create a trading log, start recording in your data, and find out what went wrong for the losing trades. Once you have sufficient data available, try to arrive at a pattern which would help you in eliminating losing trades completely.

There are a variety of stop loss strategies available which would help you to get out early from the losing trades. Most of the traders quit because they catch a falling knife and do not exit timely due to false hope.

How to deal with losing trades?

If you are in too deep damage already, then you better escape the crux before the waves and the winds turn you into cold meat overnight (this is no joke). What actually makes a successful trader isn’t overconfidence or fearlessness but the right amount of confidence and fear. If you have confidence, you will take the dive you think is necessary for the improvement of your winning chances. If you have got a little fear, then you know when to stay back huddled in a corner and not let bad trades come in to mess up the nice flow you have got going on.

For the best, what you can do is take a break (a short one) and recuperate. Solve the crisis first and put your stress to rest next. This will definitely help you put things into perspective. You can make your move slowly a day at a time. Meaning, you don’t have to quit trading, yet.

Also Read: 5 reasons why people lose Money in Stock Market

How to overcome loss of money?

OK, so you have done everything you could but still, you lost all your trading capital. How to overcome this?

This question has gotten so mainstream these days, even great thinkers don’t really know how to answer this logically. Well, you can talk it out with friends and engage in a beer-pong to get some flavor back in your life but seriously, how can this even help you improve your financial status? The answer is, it cannot. It would just help you to get some motivation and do not lose yourself completely.

7 Proven tips to control emotions while Trading

Get a therapist if you have to because remnants of self-hatred and dejection from financial loss is as dangerous as a chalice of beer burning in your veins. Accept your situation as a sensible trader would and embrace your loss with open arms. Always remember that every loss teaches you something, and this something is going to help you throughout your trading career.

On a Final Note

Dont Quit Trading

So, nothing is easy, to be honest. If you lost, you have lost but it doesn’t have to be the one and the only loss that will push you to give up completely. The day of your loss doesn’t have to be your day of reckoning. Do not quit trading until or unless you have tried everything and still can’t succeed. Be systematic and forgiving. A little bit of patience can help too. Read these 7 steps to become a successful trader.

 

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