What to do when you feel like giving up on trading forex

This is something that happens to the majority of traders. Everyone can feel that they need some help with trading from time to time as they can get frustrated or want to give up. If you feel like this, rest assured that you are not the only one and that there are ways to rediscover your passion for perdagangan Forex.

Many of us can struggle with trading and lose our motivation, especially if we experience a few losing trades. We’ve heard of traders practising for years and trying everything, testing their strategies and becoming more confident only to face failure and disappointment at the end. This is not a rare but quite a common experience among many of us. We’ve all been there and many times we have failed to admit it, pushing ourselves further and making things worse. Part of becoming a successful trader is also being strong enough to realise failure and start making some improvements. 

In this article, we will try to identify some common mistakes that lead traders to want to give up and ways to make some positive steps forward and regain confidence.

Take a break in forex trading

Having to admit that we’ve reached our limits may be a valuable lesson. This is a moment of reflection and self-awareness where you can stop, reassess your mistakes and try and find how you can find the old spark for trading. If you feel lost, the best thing to do is take a break, give your mind some time to think and dig deep to rediscover your love for trading.

What drew you to forex trading initially?

Sometimes we have to go back and find out what

was that first thing that sparked our interest in trading. That flame could still be in you and it only needs to be reignited by taking a step back. Traders are usually attracted to trading because they want to find something more exciting, financial freedom and more time with their family. This drive for freedom and making your own decisions as a trader is generally one of the most appealing aspects of trading.

Going back to this feeling that drove you to trading is important as you will remind yourself why you want to trade and why trading is so exciting and satisfying. Every one of us has their own reasons and rediscovering them could be enough to get you back on the right track.

Discover how other traders found success

Trading from one’s own home can be solitary and can make us feel isolated and lonely, especially if we don’t see the desired results in our trading. A good way to feel part of a community is seeing what other traders like yourself are doing by joining online discussions or reading about how famous traders found success. There are many books written by successful traders which can offer valuable tips and motivate you.

Getting rich fast may be a recipe for failure

One of the common mistakes many traders make is trying to get rich fast. They have the illusion of trading being a fast way to riches and they very quickly discover that is not and they get disappointed. If you are trying to make fast money, then you probably don’t understand how trading works and you’re making one mistake after another. You either trade too frequently or risk too much money per trade, both things equally bad and which can result in losing money and getting frustrated. As many successful traders have said, the best way is to start small and slowly, being methodical and calculated and not overly concerned about money. Money will eventually come when you stop thinking about it.

Plan your trades

You need to be methodical and organised, and having a trading plan is key. If you are starting out in trading, then having a clear trading plan should be one of your priorities. Be disciplined and follow your trading plan so you eliminate emotional mistakes when trading. Once you practice this and understand when to use it, you will have the basis to build on.

A written trading plan will make you focused and responsible. So, especially when you are a beginner, always have a trading plan that you can follow every day. Once this becomes a habit, you will remember the rules and follow them mentally, without the need to check your document.

Don’t risk everything

Each trader has their own funds and an idea of how much money they want to spend on trading. Always separate the money you will risk in trading and always be prepared that you could potentially lose all this when trading. It is usually said that it is best to take the amount you consider as your trading capital and divide that amount by 20. That will be your risk amount per trade. In other words, your risk should be a dollar amount that you could lose 20 consecutive times and still be able to open another trade with the same risk.

Practice in trading forex

It is best to practice with virtual funds and get a feel of trading instead of jumping right in and risking your money.

If you are not confident or overcomplicate things, you will eventually want to give up trading. So ensure you keep it simple, follow straightforward price action methods and focus on longer timeframes.

Before trading live, make sure you have a trading plan and practice it on a demo account. If you are ready to quit, just leave your live account and focus on a demo account to regain your perspective.  

One of the benefits of a demo account is how it changes your perspective and you see trading as a game rather than a way to make fast money. If you recalibrate your mind and focus on trading as a game at which you want to do well and win, then you will adjust your thinking and get ready to trade on a live account again.

Conclusion

When you feel you have reached that limit and want to give up trading, the best way is to take a break. This is not the end of the world and everyone needs the mental space and time to rediscover their love of trading and readjust their thinking. We all get to this point and the sooner we realise it by taking a step back, the faster we will be able to move forward.

Take the time to re-examine your trading approach and simplify things. No one has a trading system that works perfectly and everyone makes changes and improvements to their trading techniques.  

One of the key factors in succeeding in trading is one’s approach and psychology. Keep the right mindset, find a trading method that works and manage your risk, and the rest will follow. IronFX offers a wide range of educational resources to keep you on the right track. From webinars, insightful articles, podcasts and courses, we ensure that you have a library of resources you can turn to any time you want. If you have any questions or would like support, your dedicated account manager is at hand to help.

Disclaimer:

This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced or hyperlinked, in this communication.