A Guide to Coping with First Failure Blues
Losing your first trade in the forex market may seem like the world crashed down on you as if the apocalypse transpired. Fret not, however, this will only make your victories that much sweeter. Below are pointers to apply when the emotions get overbearing at the forex market.
Embrace your Feelings
You are feeling all of the negative emotions following the loss. You may resort to rage, disappointment, and despondency. These are all normal emotions to feel as human beings. Reflect on what your body is telling you. Is your heart palpitating? Are your knees and hands shaking? The enemy of happiness is unrealized expectation. Trust in the process.
Set Your Expectations Low
Expect to be terrible at the beginning. There is no success without going through the depth of failure. A trader who does not know the market fully and thinks he or she is a big shot is under the effects of the Dunning-Kruger Effect, a psychological bias wherein a person overrates his or her abilities compared to their actual skill. An opportune time to review and adjust your expectations is during your first-ever failure. One thing you can do is to ask questions from your forex broker and prepare yourself mentally.
Rushed Learning Leads to More Mistakes
Reflect on your performance to mitigate errors in the future. Reflection entails self-awareness. It would help to have a journal to write down your thoughts on the matter. Pen and paper beat typing on a laptop in this case. This is your opportunity to absorb the mistake, mull over it, and refrain from repeating it next time.
Restart with a Fresh and Altered Approach
In the words of the renowned physicist, Albert Einstein, ‘Insanity is doing the same thing over and over again but expecting different results. If your approach isn’t working, attempt something else. Fail hard, fail fast, fail forward. You may select other trading strategies you have researched about or create one yourself based on empirical evidence that has been done.
Refrain from Juxtaposing Yourself to Other Traders and Criticising Yourself Heavily
Put everything in perspective. In life, there will always be someone worse than you, and someone who will be better than you. There is no positive point in comparison. Instead, direct your energy inwards and control the inputs, not the outcomes. Do you now have a clearer grasp of the market? If your answer to that is a definite yes, pat yourself in the back for treading in the right direction. If not, then that is a sign to invest in yourself and grow.
Bear in Mind that True Success Does Not Come Immediately
Remember that it is not over until you win. It only takes one success to have a domino effect. Keep going! An example would be Col. Harland Sanders. The KFC brand would never be a fried chicken phenomenon if he gave up at the first restaurant he got rejected in. It all starts from choosing the right forex broker that best suits your trading style and plan.