Even with all the thorough planning and best Bollinger band strategy in action, risks in stock trading almost always exist. The market movements are dynamic, unpredictable in many ways, that cannot be assured of with theories. So, even when you least expect them, you may still sustain big losses in your trades.
If you have recently experienced any such big stock trading loss, here are 5 tips on how to bounce back in the game like a complete pro:
1. Control your emotions and stop trading
When you have lost your money, you will feel instantly compelled to get it back, somehow, quickly. In trading, this instinct usually paves way for rash and unwarranted trades, leading to even more loss. So, after losing money, get a hold of yourself and control your emotions.
Stop trading right away and take a break.
2. Accept that you messed it up
Many traders, after big losses, remain in denial. They blame everything and everyone for why the trade went wrong. They never hold themselves accountable for the outcome. Don’t be one of them. Doing this, you're only blocking the scope to learn from this experience.
3. What did you learn from this loss
Every big setback also comes with great opportunities to learn.
As cliché as this may sound, it's also very true. Why did you lose your money in this trade? What went wrong? What wrong decision did you make? Was it the timing of the trade? Or was it your stop-loss, take profit positions at fault?
On break, take some time to reflect on this loss. Try to find answers to some critical questions. Take this opportunity to learn. You don’t want to repeat the same mistakes again.
4. Re-strategize everything; fix loopholes
You thought you had the best trading plan? You believed your Bollinger bands trading strategy cannot go wrong? You thought that piece of article in news was a bluff?
Of course, you were mistaken. Your plans and strategies had flaws and loopholes. Once you have learned your lesson, move on to refine your existing process and fix all the wrongs. Give your charts, tools and own market understanding a hard look.
Re-group. Re-strategize. And then streamline your trading plan the right way.
5. Contact an expert or consultant
You’re not an "expert". And you know that too. At a time when you have sustained a big loss, getting back your confidence would be a significant challenge. You will find yourself very anxious with whatever you do here on.
To counter this state, it's best you hire a good expert or consultant. The right individual, by your side, can help you in a big way, guiding you in devising a better strategy and assisting you in making timely trades. Besides, if you're really looking to build a high-rewarding, sustainable portfolio, it's always recommended to hire an expert -- even when you're trading full-time.
These are 5 tips to help you bounce back after a big stock trading loss. Good luck!
