The initial stages of your forex trading career will be full of surprises. Some of these will be good surprises while others will be bad surprises. While most forex traders deal well with the good surprises, they are unable to cope with the bad surprises.
Usually, bad surprises take the form of the chosen forex trading systems not doing well in the market. The result, as is obvious, is unexpected losses. The future of your entire career in the forex market will depend upon how well you deal with losing trading systems. Consider the following.
Testing the System
It is good practise to always test the forex trading systems you have chosen. There are two reasons for this. The first is that you would get to know how effective your systems are and how much loss you can expect them to bring you.
Every system has the potential to bring you losses. If you know the extent of losses to expect then you can plan for them. However, if the loss that you have incurred exceeds your extent of expected losses then it is time for you to go back to the drawing board and figure out what you did wrong while implementing your system.
While not common, some traders due to their inexperience forget to test their chosen forex trading systems before implementing them in the market. When such untested systems start incurring losses then it can be quite difficult to figure out whether the losses are a result of poor implementation or poor choice of systems.
The best thing to do in such situations is to stop your trading activity and test the systems in question before resuming with them. This way, you can know the real problem and go about fixing it logically.
Sometimes, you will be unable to pinpoint the reason why your forex trading systems are bringing in losses as opposed to profits even after going through various diagnostic procedures.
In such situations, the best thing to do is seek out external counsel for a second opinion. Show your results to a trading friend or mentor and let them try to figure it out for you.
Accountability is vital if you plan on sustaining a profitable career in the forex market. This accountability can be difficult to instil because you, like most traders, are most probably using your forex trading systems alone.
This situation can see you put off the need to face the fact that you have incurred losses. However, you must put your head down and face the consequences of what has happened or you may even lose more.
Inevitability of Losses
Every trader goes through periods where his chosen forex trading systems are not working for him. This includes people who are extremely successful and have made a name for themselves such as George Soros. A trader who does not accept the inevitability of losses is not only putting a lot of pressure on himself but also making it more difficult to make profits.