The greatest Forex market traders are those who can control their emotions during their trading activities, and separate themselves from their harmful emotions. Many FX traders feel the excitement, glory, and joy when they succeed but if they have bad trading days they feel exhausted, depressed, and unqualified. In a short time, when traders experience many large losses, they prefer to “revenge trade” with the mentality that they will change their current losses into gain. Their frame of mind is no longer rational, however, and so they continue to make basic trade errors, losing more money again and again.
Revenge trading usually happens after a trader suffers a loss, particularly if it’s greater than what he normally could manage. After a trade, traders which they were sure will be good, many market traders usually enter revenge mode, goes wrong resulting in the big loss of money. As they become upset, beginner in Forex Trading may attempt to compensate for the recorded losses by jumping straight back into the market. And, because the decisions of trades they are about to take will all be based on their feelings, they are very likely to fail and likely result in a bigger loss than the previous one.
Emotional Forex trades sometimes happen, and the funded account gets wiped out quickly whenever the Forex traders lose the control Even with a strong strategy, strict proper discipline and good management of money after making bad choices it is very easy to become emotional. Increasing the size of the lot to make it back, pushing stops, making reasons to continue open trades, looking for opportunities which are not even there. When it comes to revenge trading the main issue of all is you don’t really know that you are doing it.
When these Forex traders continue to place this insane next trade they are so distracted by their own feelings that they do not base that trade on a good analysis. Neither do they take proper account of the risk associated with trade? This trade is so over-leveraged and most of the time, that it reveals a huge percentage of traders equity. Now as this trade is sometimes impulsively done and in a rush, it is typically a very bad trade. The win ratio of standard revenge trades is truly terrible. Ultimately, the vast majority of Forex traders in this trading style who get snared at some point they blow their accounts.
Forex Trading is exhausting physically as well as mentally. Traders have to step away from the trading screen every now and then and relax their minds, particularly after a tough loss. Some might recommend learning new material or making up different strategies, but it would be an even good idea to turn to an activity that is totally unrelated to trade. Thought about what will help you feel relaxed and ready to enter the Forex game again.