What to Do When You Lose a Trade

Making mistakes is part of life, and trading is no exception. Even the most experienced traders lose trades. But it’s important to know how to handle these losses so they do not derail from your path to success.

Here are 4 practical steps you can take after a losing trade.

4 Practical Steps After Losing a Trade

1. Stop Trading for 5 Minutes

When you’ve just lost a trade, it’s easy to feel emotional and make an impulsive trading decision. That’s why it’s important to take a step back, and give yourself a 5 minute break.

The break will help clear your head and come in with a fresh perspective.

2. Write Down Your Emotional State

Writing is a powerful tool to help you have clarity on a topic. You can use this tool to help you get clarity on how you’re feeling. This can help you release those emotions and avoid letting them influence your trading decisions.

3. Have a Short Walk

One of my favorite activities after losing a trade is to go for a short walk. Physical activity helps me reduce my stress and improve my mood. This also a moment, where I can reflect on my trading day, and come back with a clear head and fresh perspective.

4. Wait Until The Next Quality Setup

The final step you can do after a losing trade is to just wait for the next setup. Let the chart setup meet your trading criteria. This will help you avoid making emotional trading decisions and increase your chances of winning the next trade.