Losing money trading for the first time? - How to overcome the shock
Losing money trading for the first time? Here's how to get past the shock
It can be tough, especially if you've performed well on the demo
So you decided to try out the simulator. You made gains a few days in a row and then thought this must be the way how markets work. Then you decide to go real.
Everything goes well for a few days. You copy your strategy from the demo and make a bit'a profit. Then you decide to go big time. And all of a sudden...
RED... a big red arrow, pointing downwards.
You kinda expected it but didn't think it's gonna hurt that much. It's like a big math exam you've studied for an were convinced you understand the concept, but completely freeze when you see the complexity of the example given to be solved. You know how to solve it, but somehow forget where to start.
If you've recognised yourself in this situation, then congratulations - You’ve now experienced what it is like to have not just your expectations, but your self esteem as a person crushed. But that's what we're here for so listen up!
Trading is all about experience - there are very few trader legends without at least 10+ years in it and below 40 years of age. It's all like your first steps in the world of grown-ups, where things get more fun the older you get, because you've seen everything and history tends to repeat itself.
So the most important thing about this case to remember is don't place a lot of money on a few trades. In the beginning you're not there to make money - you need a lot of money for that. In the beginning you're in the game to learn.
Once you make, say, 10 consecutive days of positive returns only then think of raising the bar. Remember - things might seem scary now, because you don't know what to expect, but time will put everything in its place. Just like in life.
You're not there for the money, but to learn.
Don't lose a lot of money when you start as Warren Buffet said the first rule of investing is not to lose money, the second rule is not to forget.
If you enjoyed reading this article from Trading Education please give it a like and share with anyone else you think it may be of interest too.