A practical guide to dealing with trading losses, revenge trading, emotional stress and improving your trading discipline.
If you have started getting headaches because of losses in the Share Market, then first of all, you don't need a headache medicine, you need to stop Trading.
A person is losing ₹5,000–₹10,000 every day, and then the next day he starts thinking:
“Today I will recover the loss.”
But while trying to recover the loss, he takes even more Trades.
Then the Loss increases...
Stress increases...
And the same cycle starts again the next morning.
If you look closely, this is not Trading.
This is Revenge Trading.
At such a time, the best thing to do is to stay away from the Market for a few days.
Take out all your Trades and write down just three things:
Identify the exact price and market condition when you entered.
Was there a genuine Setup, or was the decision emotional?
Find the decision that turned the Trade against you.
By doing just this, you will understand where the problem is happening.
Then the next step is very Simple.
Don't try to make Profit for some time.
First, just try to reduce your mistakes.
And until your mind becomes calm, staying away from Trading is the best thing for you.
“Even the right Setup can turn into the wrong Trade when you are in a bad mental state.”
If the headache is happening repeatedly or feels unusual, don't ignore it by assuming that it is only because of Trading Stress.
It is better to consult a doctor.
The Market will open tomorrow too.
But if both your mind and your money get damaged today, then there is no point in taking the next Trade.