In trading, losing days are unavoidable. If you cannot handle bad days in trading, staying away from trading entirely is advisable. The good news is that traders can learn ways to deal with bad trades.
Losing trades does not make you a bad trader; what does is not learning how to deal with these trades. A lack of knowledge on dealing with bad trades can expose traders to even more losses. It can also lead to potential personal and mental issues.
To avoid several complications that may arise from bad trades, the best thing to do as a trader is to learn the expert-proven ways to deal with bad trades, as I have explored in this article.
Let’s get right into it!
Top 10 Ways to Deal With Bad Trades
1. Accept Responsibility
You need to learn to accept the outcome of every decision you make as a trader. You are the sole determinant of your trades’ results; other factors are secondary. If you blame others, you only admit that you cannot control your own trading. This attitude will only make things worse because there is no point in putting effort into what you cannot control.
There is always an excuse for losing a trade. However, even though you might have a good one, you must accept responsibility first. Doing this will make identifying what could have been done differently easier.
2. Analyze Your Losses
The second proven way to deal with bad trades is to find out what you did wrong. Learn from your mistakes to avoid reoccurrence. Honestly, analyzing your losses will save you from making the same mistakes later in the future.
This task might seem daunting, but you need to be as objective as you can so that you will be able to get to the root cause.
Unfortunately, it is easier to be manipulated by emotions. You can only identify the cause(s) by staying level-headed.
3. Review Your Position Sizing
Another thing you need to do when you make a bad trade is to review your strategies in trading. You should ask yourself these honest questions: are you using the best trading strategies? Do you need to correct or change your position sizing? Do you need to garner more knowledge in some aspects before you take your next trade? Etc.
You might need to abandon your old strategies and pick up new ones. This will allow you to view the market from another point of view and will surely help your trading abilities.
Although it is hard to drop old habits, you should always be ready to unlearn and relearn when it comes to trading. This is one of the best habits of successful traders.
4. Set A Stop Loss
I always advise traders at TradeWithMac to set stop loss – it is the best and most important strategy to avoid liquidation. No matter how confident you can be about a trade, you must always set a stop loss.
Every trade can only go two ways, good or bad. Understanding that not all trades can be good, no matter your level of expertise, will help you immensely.
5. Review Your Exit Strategy
Reviewing your exit strategy is the fifth tip on the best ways to deal with bad trades. Honestly, not all battles are worth fighting. Traders should learn to leave the market when necessary. You should understand that you need a good exit strategy to become a successful trader. You can’t achieve anything with greed; you tend to lose more. As you learn to set your stop loss, you must also learn to take profit at the right time.
6. Take A Break
You might need to take a break after a big hit and return to trading with a clear mind. Sometimes, being overfocused on trading can make you miss crucial points. You do not want to realize at a later hour that the solution to your bad trading habit has been staring at you all along without you taking notice.
7. Rebuild Your Confidence
It is easy to lose trust in your trading abilities with one bad trade. Your confidence can be low, and you might become too afraid to take other profitable trades if handled incorrectly. Work on your courage to avoid being too discouraged to take other trades. See mistakes as they are, pick the essential lessons, and move on.
8. Start Small
Don’t be overly aggressive with other trades to regain lost funds. This attitude will only land you in a bigger mess. Try not to jump back to the same position size you were trading. Rather, take smaller trades and build your portfolio gradually.
I understand that it can be annoying to take smaller trades after you have traded in a bigger position size. However, you can’t afford two big losses in a row. Bouncing back from your loss requires you to go back to the basics.
9. Realign Your Focus
You were probably overconfident when you started trading before the market “put you in your place.” However, this should not make you lose focus on why you entered the market or started trading in the first place.
Find what attracted you to trading from the beginning and focus your interest on these attractions.
10. Garner More Knowledge
The final tip on my list of the best ways to deal with bad trades is acquiring more knowledge. Your loss might be due to your lack of knowledge of the trades you are taking. Unfortunately, some traders are half-baked yet present themselves as one who knows everything.
According to Ralph Waldo Emerson, “Continuous learning is the minimum requirement for success in any field.” Therefore, it is not advisable to stop learning because you believe you are good at making trades.
Conclusion on The Best Ways To Deal With Bad Trades
Learning never stops, especially as a trader of any financial market, instrument, or asset. Read articles, watch videos, and research trading to avoid more losses due to ignorance. This article on 10 Expert-Proven Ways to Deal with Bad Trades can be your starting point.
This Post Has 55 Comments
Merely a smiling visitor here to share the love (:, btw great design and style.
I and also my pals were looking through the best key points on the blog while immediately I had a terrible suspicion I never thanked the site owner for them. All of the boys appeared to be excited to read through all of them and now have very much been taking advantage of these things. Appreciate your indeed being simply helpful and for using certain great things most people are really needing to be informed on. My sincere regret for not expressing appreciation to you sooner.
I’m really enjoying the theme/design of your blog. Do you ever run into any internet browser compatibility problems? A couple of my blog visitors have complained about my site not working correctly in Explorer but looks great in Chrome. Do you have any solutions to help fix this problem?
What i don’t understood is actually how you are no longer actually much more well-favored than you might be right now. You are very intelligent. You already know therefore considerably in relation to this matter, made me for my part consider it from numerous varied angles. Its like men and women are not fascinated except it’s something to do with Girl gaga! Your personal stuffs outstanding. At all times deal with it up!
I have been surfing online more than 3 hours lately, yet I never found any interesting article like yours. It’s beautiful price enough for me. Personally, if all website owners and bloggers made good content material as you probably did, the web might be much more helpful than ever before.
I think other web-site proprietors should take this web site as an model, very clean and magnificent user genial style and design, let alone the content. You’re an expert in this topic!
Really wonderful information can be found on site. “The absence of flaw in beauty is itself a flaw.” by Havelock Ellis.
I wanted to develop a quick comment so as to appreciate you for some of the amazing pointers you are showing on this website. My particularly long internet search has at the end been paid with extremely good know-how to write about with my family and friends. I ‘d express that many of us visitors are definitely fortunate to exist in a remarkable network with so many awesome professionals with beneficial tactics. I feel really blessed to have encountered your web pages and look forward to really more enjoyable moments reading here. Thanks once again for everything.
Thank you for sharing excellent informations. Your web-site is so cool. I’m impressed by the details that you have on this site. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my pal, ROCK! I found simply the information I already searched all over the place and simply couldn’t come across. What a great web-site.
Understanding NanoDefense Pro: What is it? NanoDefense Pro is a specialized formula designed to improve nail and foot health naturally.
Good – I should certainly pronounce, impressed with your site. I had no trouble navigating through all tabs and related info ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your client to communicate. Nice task..
Some genuinely interesting information, well written and broadly user genial.
You got a very wonderful website, Gladiolus I noticed it through yahoo.
Great write-up, I’m normal visitor of one’s site, maintain up the nice operate, and It’s going to be a regular visitor for a long time.
Hello! Do you know if they make any plugins to help with Search Engine Optimization? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good success. If you know of any please share. Appreciate it!
I relish, result in I found just what I was having a look for. You have ended my four day long hunt! God Bless you man. Have a great day. Bye
I’ve been exploring for a little for any high-quality articles or blog posts on this kind of area . Exploring in Yahoo I at last stumbled upon this website. Reading this information So i’m happy to convey that I have an incredibly good uncanny feeling I discovered just what I needed. I most certainly will make sure to don’t forget this website and give it a glance regularly.
Very nice post. I simply stumbled upon your weblog and wanted to say that I’ve really loved surfing around your weblog posts. After all I’ll be subscribing in your rss feed and I’m hoping you write again very soon!
Good site! I really love how it is simple on my eyes and the data are well written. I’m wondering how I could be notified whenever a new post has been made. I have subscribed to your RSS which must do the trick! Have a great day!
Im not sure the place you’re getting your information, however great topic. I needs to spend some time studying more or figuring out more. Thanks for wonderful info I was in search of this information for my mission.
What i do not realize is actually how you are not really much more well-liked than you might be now. You’re very intelligent. You realize thus considerably relating to this subject, made me personally consider it from a lot of varied angles. Its like women and men aren’t fascinated unless it is one thing to accomplish with Lady gaga! Your own stuffs outstanding. Always maintain it up!
Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how could we communicate?
Thanks for the blog post, can I set it up so I get an email sent to me every time there is a fresh update?
Good day very cool blog!! Man .. Beautiful .. Superb .. I will bookmark your website and take the feeds additionallyKI’m satisfied to seek out numerous helpful information here within the put up, we want develop more strategies on this regard, thank you for sharing. . . . . .
This web site is really a walk-through for all of the info you wanted about this and didn’t know who to ask. Glimpse here, and you’ll definitely discover it.
Good V I should definitely pronounce, impressed with your website. I had no trouble navigating through all the tabs as well as related information ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your customer to communicate. Nice task..
What Is FitSpresso? FitSpresso is a natural weight loss supplement that alters the biological cycle of the body to burn more calories and attain a slim and healthy body
This is a very good tips especially to those new to blogosphere, brief and accurate information… Thanks for sharing this one. A must read article.
This really answered my problem, thank you!
Great line up. We will be linking to this great article on our site. Keep up the good writing.
What Is Sumatra Slim Belly Tonic? Sumatra Slim Belly Tonic is a weight management formula that is said to eliminate excess body fat naturally.
You should take part in a contest for one of the best blogs on the web. I will recommend this site!
I got good info from your blog
I believe you have noted some very interesting details, appreciate it for the post.
Lovely just what I was searching for.Thanks to the author for taking his time on this one.
SightCare is a vision enhancement aid made of eleven carefully curated science-backed supplements to provide overall vision wellness.
Hello! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!
Of course, what a great blog and informative posts, I surely will bookmark your blog.Best Regards!
I was very pleased to find this web-site.I wanted to thanks for your time for this wonderful read!! I definitely enjoying every little bit of it and I have you bookmarked to check out new stuff you blog post.
Hello, you used to write magnificent, but the last few posts have been kinda boringK I miss your super writings. Past few posts are just a bit out of track! come on!
When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!
Hi! Someone in my Facebook group shared this website with us so I came to check it out. I’m definitely loving the information. I’m bookmarking and will be tweeting this to my followers! Terrific blog and excellent design and style.
Thanks for sharing excellent informations. Your website is so cool. I am impressed by the details that you’ve on this blog. It reveals how nicely you understand this subject. Bookmarked this web page, will come back for more articles. You, my friend, ROCK! I found simply the information I already searched everywhere and simply could not come across. What a perfect website.
Alors que la technologie se développe de plus en plus vite et que les téléphones portables sont remplacés de plus en plus fréquemment, comment un téléphone Android rapide et peu coûteux peut – Il devenir un appareil photo accessible à distance ?
Existe – T – Il un moyen de récupérer l’historique des appels supprimés? Ceux qui disposent d’une sauvegarde dans le cloud peuvent utiliser ces fichiers de sauvegarde pour restaurer les enregistrements d’appels de téléphone mobile.
Good – I should definitely pronounce, impressed with your website. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or anything, web site theme . a tones way for your customer to communicate. Nice task..
You can definitely see your expertise in the work you write. The world hopes for more passionate writers like you who aren’t afraid to say how they believe. Always follow your heart.
Just wanna remark on few general things, The website style is perfect, the subject material is real superb. “The reason there are two senators for each state is so that one can be the designated driver.” by Jay Leno.
Very interesting topic, appreciate it for posting.
Very interesting information!Perfect just what I was looking for! “It’s the Brady Act taking manpower and crime-fighting capability off the streets.” by Dennis Martin.
I haven’t checked in here for some time since I thought it was getting boring, but the last several posts are great quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂
I real thankful to find this site on bing, just what I was searching for : D likewise saved to bookmarks.
Good post and right to the point. I don’t know if this is in fact the best place to ask but do you folks have any thoughts on where to hire some professional writers? Thanks 🙂
Can I just say what a relief to find someone who actually knows what theyre talking about on the internet. You definitely know how to bring an issue to light and make it important. More people need to read this and understand this side of the story. I cant believe youre not more popular because you definitely have the gift.
After all, what a great site and informative posts, I will upload inbound link – bookmark this web site? Regards, Reader.