Whether it’s the results of unexpected market events or simply a poor trade idea, losing money really sucks.

What’s worse is that when it happens over and once more, it will definitely affects your confidence and trading approach.

Simply to make up on your losses, a few of you almost certainly resort to revenge trading by throwing your trading plan out the window and jumping in at every possible trade opportunity.

Or perhaps you turn out to be so terrified of incurring more losses that you just even begin to avoid trading a few of your best trading setups.

As a substitute of reacting negatively to losses, a greater mindset would probably be one which involves actively learning and improving from those losses.

Successful traders study the mistakes they make and the market conditions during which the losses occur. They fight to dissect the aspects behind those price movements and adapt their trade strategy accordingly.

By getting accustomed to this means of reviewing each winning and losing trades–and actively adjusting to enhance one’s system–losses could be soon minimized and market patterns could be learned.

This process is known as deliberate practice and it’s what the professionals do in any performance field to improve!

Professionals of all kinds (including athletes, doctors, musicians, etc.) take part in this process to get where they’re today.

Deliberate practice could be broken up into three primary stages: the act itself, feedback, and incorporation. Let me discuss each.

1. The Act

Because the name suggests, the act is your attempted performance. It doesn’t matter whether it was successful or not; what is vital is that you just tried to the perfect of your abilities.

In forex, the act pertains to really taking demo or live trades.

2. Feedback

It’s essential to all the time do not forget that you can not actively watch yourself whenever you trade.

As a substitute of mindlessly going through the motions, that you must make a conscious effort to take a third-person standpoint, record every thing you may of your performance, and analyze what you probably did right and what you probably did improper.

3. Incorporation

After you might have properly recorded what you might have done, you now have to take the steps needed to alter the things that need changing.

Ask questions like, “which pairs do I trade well?”, “which pairs do I do poorly?”, “what market times are more suitable for my systems?”, etc. By actively doing this each day, you’re in a position to jumpstart competence and develop your skills much, much faster.

By engaging in deliberate practice each day, not only does it turn out to be easier however the effect of the recording, reviewing, and making adjustments turns one trading experience into many–thus speeding up the educational process.

Getting a jump start on this process will not be hard in any respect. The truth is, you’ve got all of the tools you wish right at your fingertips!