How to protect the psyche from losses? 5 questions that restore the trader’s peace after a series of losing trades. Use as needed.

When you lose money as a result of trading, and this will certainly happen, and more than once, ask yourself these five questions. They will help you return to peace much faster.

One of the biggest psychological problems (if not the biggest) that absolutely all traders face in the trading process is the loss of money. Sometimes these losses are indeed very large and extremely painful. And no matter what they are caused by – lack of experience, carelessness or a trivial mistake in calculating the position.

Even if you did everything right, losses can happen. Moreover, just if you did everything seem to be right, but still lost money as a result, we always perceive such losses much sharper.

Losses have a stronger psychological effect on us than profit.

In a sense, it will probably be impossible to achieve an absolutely calm attitude to the loss in principle. But to minimize the emotional response to failure is completely within the power of any trader, even a beginner.

Do not get me wrong, I’m not talking about a loss of 50% or even a complete drain of the entire deposit. In no case! But even with a well-established limit of loss of 1-2% of the deposit, losses will still cause an unpleasant emotional response inside. Sometimes it is so exhausting psychologically that after two consecutive losing trades, a trader cannot return to trading for a week, constantly blaming himself for what happened and falling into deep doubts about his suitability.


These five questions that I want to offer you today, you need to ask yourself after the loss. They will help to take the situation for granted, stop mourning the resulting loss and focus on the next deal.

You can use them sporadically, as needed, or you can print and hang next to the monitor. However, if you feel that losing trades affect your psycho-emotional background and harm trading, it is better to use them.


Before you trade using any trading system, you should not just test it on the historical period. It goes without saying. You need to understand how much the chosen system corresponds specifically to your character, method, and speed of thinking, your temperament.

And not just the system. The asset you are trading is a working time frame. Even the most active time of day for trading is also of great importance. Someone is more mentally active in the morning and someone after dinner. It depends on so many factors.

But it is important to remember that there are only profitable trading systems. Any system will give a losing streak. Sometimes in several transactions in a row. Therefore, maintaining calm and clarity of thought in such periods is very important.

If you are in a losing streak, or it was just one losing trade, but you have doubts about the accuracy and suitability of your trading system, return to the test results for the historical period. But do not rush to change anything yet. It’s never worth the fuss. Make sure that the system is working, and this will help you regain confidence and continue to move forward.


No matter how much money you lose, there is no way to change what happened. What happened is what happened. If you understand that you made a mistake, now is the time to rethink your trading and think about what led you to this error. It may sound trite, but with respect to the loss is extremely important.

Negative experience is a great teacher. Sometimes he teaches much more effective than positive.

If you lost a part of the deposit as a result of a series of losing trades, then do not reproach yourself and do not self-flagellate and self-demeanor, sorting out 10,000 ways in your head with the help of which these losses could be avoided. This will not bring you peace and will not return the money. But decently shake the nervous system, you can. Do you need it? Take what happened, draw conclusions and move on. The important thing is not what you lost, but what conclusions you made from this situation. This will determine a lot in your future trade.


A thirst for revenge and revenge covers everyone. This is our nature – we always want to punish the offender. But realizing this desire is very dangerous. There is a good saying that you probably know well: revenge is a dish served cold. If you really want to take revenge, it is better to cool your head, restore peace of mind, and after that, it is thoughtful to return the lost.

Trading out of revenge is a double issue. As soon as you begin to take revenge on the market in a fever, then all your rules and strategies fade into the background.

As a result, losses only increase. Resentment for being so stupidly neglected by his own rules, losing his temper and seriously damaging the deposit is mixed with a feeling of chagrin. That is, not just sadness from lost money, but also anger at oneself.

And this may prompt you to think that you are a bad trader. Such thoughts are very harmful. In this business, it is very important to believe in your strengths, abilities, and skills, to trust the web, and most importantly, the decisions that you make.


You can trade quite successfully, but your risk level may be too high. The risk should be comfortable in two ways, both in monetary terms and in relation to the size of the deposit. Sometimes these indicators do not match, which also leads to additional psychological stress.

For example, you can set yourself a rule to risk in one transaction no more than two percent of the deposit. And, from the point of view of the rules of money management, this is correct and extremely reasonable. However, in monetary terms, the amount at risk will be very significant for you.

Even using elementary mathematics, it can be assumed that if the risk is 2% of the deposit and the risk/profit ratio is 2: 1, with the results of testing the system, which showed a 65% chance of a successful transaction, your trading will ultimately be profitable, and quite.

But the monetary equivalent of this 2 % can create unnecessary psychological stress. In this case, reduce the risk and proceed not from the percentage of the deposit, but from the psychological tolerance of the amount.


What is trading for you? Just trading for a living or a way to express yourself? Or maybe it’s a way to show everyone their “coolness”? Or are you trying to justify someone’s hopes, to prove something to yourself and people significant to you? You can still build a variety of assumptions and sort through options.

But one thing is obvious: if in each transaction you risk not only money but a part of yourself, then calm trading will not work.

The bottom line is that for us there is always something that is one hundred times more important than money. This is our self-esteem, our perception of ourselves, our value in our own eyes. If we perceive a losing trade as a public humiliation, then the stress will be very severe as a result. If you want to become a professional trader, then you have to go through thousands of transactions in your career. Not all of them will be profitable.

In this context, it is very important to learn to separate yourself, your personality and your human qualities from the results of a particular transaction and all trade in general. Trading is only a business that could potentially become the main source of income, or may not.

You are a person with all your pluses and minuses. Unprofitable transactions, no matter how many there are in your life, do not at all indicate your worthlessness and insolvency. You do not need to be constantly right and constantly prove something to someone. Transactions are only transactions. No need to make their own life depended on them.

These are five questions. The main thing is to answer them honestly, and then it will be much easier to survive the unprofitable strip!

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