Trading involves losing , so accept it.
Trading involves losing. You can still lose more trades than you win and make money when you trade, so I have learnt over the years not to worry about your losses.
However, you must always take your loss.
Here is the scenario
You find your pair to trade. You have conviction. There is a cntral bank divergence and one currency is set to gain, the other fall.
You set your levels to enter and your total risk by setting your stop.
The trade goes against you. It shouldn't. The trade goes against you. It's weird. There is no clear fundamental reason for that to happen, but it does. You are through 2 technical levels that could have held. You still believe in the trade, but price is now near your stop.
What should you do?
Take the loss. You have set your risk, don't skew your results by not taking your losses and adding to it. If you still like the trade you need to re-assess, re-enter. but as a separate trade. Moving stop losses as a habit will wreck your trading and set off a whole host of other trading problems like over-leveraging and revenge trading. Accumulate capital slowly, rather than lose it all quickly.
As an England football fan I have practised this skill many times. I am prepared for Tuesday's game against Germany. I know how the script goes.
