A loser’s mindset almost always leads to further trading losses. Be wary of it and save yourself from extravagant trading losses.
How to Avoid a Losing Mindset?
A loser’s mindset leads to further trading losses. How does one get into a losing mindset?
There are a few ways:
- A losing streak – Drawdowns in Forex trading effectively wiping out your confidence.
- A negative attitude – Do you believe in self-fulfilling prophecies coming true.
As a trader it is inevitable that your account would be hit by losses. And when it does happen, you risk being succumbed by a loser’s mindset. Especially when you hit a string of losses.
A negative attitude in anything almost always results in failure. A negative attitude is no excuse in the trading game.
The only solution is to step back. Take a breath. Wait until the nerves and the adrenaline rush flushes from your body (if you were in a losing streak). Reflect on the reason why you are trading (if you have a negative attitude). Review and reflect on the trade. And simply start over again taking on board anything you conceived from your reflections.