Psychology in Trade: Coping with losses

A popular quote regarding success is this: "Success is measured by the ability of a person to bounce back after a fall."

People who are into trade and foreign exchange know for a fact that their business has risks attached into it. Or else, it wouldn't be that much fun and interesting. Right? Yet, we come to ponder on the question: what separates the winners from the losers and the losers from the winners if at some point in trading time, all will have to experience some amount of loss?

Well, we believe that the difference is the ability to cope on every fall. This capability, we believe, stems from the value of trader he/she puts upon him/herself. We have lengthily discussed in past articles that empowerment drives a trader to excel and push himself to the maximum.

Various trading systems are made available to the trader in forex. They may really bring fortunes to those who can handle them. They serve as tools for the craft, but it is the artisans that yield these tools for personal perfection.

The point in case: winning, and emerging the winner, is a state of mind. Don't be misinformed that this advice is just another case of quack doctors trying to enter your field of trade. Rather, think that this is a time-tested, sure-fire information that utilizes your technical knowledge and intertwines it with proper motivation.

Foreign exchange may be seen by some as a "gamble" but this mind-set escapes the fact that trade is a science and it made the world and civilizations go round. "Gamble" are for pessimists. Rarely do we see them last in the world of foreign exchange and most likely, they are the losers in the long run. They never rise above the ashes because they just move around the game without

Therefore, the proper attitude must include that of optimism. The "can do" outlook must permeate throughout the trader's personality. Even though you may be in a losing streak, even on a winning streak, that "can do" attitude, combined with proper systems, will get you to big breaks.

Like any person entering a war room, you must come mentally prepared. Analysis of trend line will come easier if you have breathed in the proper mental preparation and breathed out pessimistic senses. Numbers and figures will come easier with this preparation. Trend analysis will come as natural as water flowing or leaves falling. Interpretation of lines will draw like a perfect figure for you.

Final point: Win and win more. That's the spirit in trade.