Updated from its original posting on 2012-06-08
In life, there are ups and downs. There are times when the good things just seem endless and you feel invincible. But there are also be occasions when you feel that everything is going against you.
This happens in forex trading as well, but it comes in the form of winning and losing. Winning and losing are a constant in forex trading, but there are some traders, most especially the new ones, who can only handle the former.
Winning is all they can cope with, and they consider losing as unacceptable. This kind of mindset is unhelpful, destructive, and even self-defeating.
The fact of the matter is, losing in trading is important, if not essential. If you’re not ready to lose, it will be IMPOSSIBLE to survive in the forex world.
If you’re having a hard time coping with idea of “acceptable losses,” here’s one technique you can practice to help you overcome your fear of losing: think of losing as a very, very close friend who is always there for you.
Your closest friend is one who will tell you the absolute truth. They don’t beat around the bush to avoid hurting your feelings. He or she may criticize you or point out something you did wrong, but in the end, you know your friend means well and is just looking after your well-being.
Of course, just like you would with your real-world friends, you should listen carefully to your losses so that you can learn and improve on your trading performance.
The best traders know they can lose 100 trades in a month and shake it off because they realize that they can learn something from each of those losing trades.
They understand that it’s simply part of the business of trading.
So learn to accept the friendship of losing and smile when you lose. Each loss is an opportunity for you to learn and improve as a trader!