For Business

Trading Psychology

How to Rebuild Confidence After Losing an Account

Confidence after a lost account is rebuilt from the doing being right, twenty times, at a size that cannot hurt, and not from the balance. This paper shows you a restart in example figures, a 1,000-dollar account at 0.01 lot and a month of twenty graded trades; the idea as a singer back after illness, singing scales before songs; the month as a seam of twenty even stitches; a report card with four lines of doing and no line for the balance; and the new account's Volume column on your platform, where the first line of the card is kept for you.

Difficulty
Advanced
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

This paper is locked

Read it in the browser and keep the PDF with Premium, or buy this one paper.

Buy this paper — $3Get Premium

The restart

Confidence is rebuilt from something other than the balance. The old account, 10,000 at five percent a trade, went in a season, with these as example figures. The new one is 1,000, traded at 0.01 lot, where a 25-pip stop on the euro is 2.50, a quarter of a percent. The first month is twenty trades, every one at 0.01 and every one graded for the doing: sixteen A's, three B's, one C. The balance moved by tens of dollars and is not the measure. Confidence is rebuilt from the count of A's, because a month of A's is a month of the plan followed, and that is the thing that was lost with the account, not the money.

Scales before songs

Picture a keyboard with a scale marked on it. A singer back after an illness does not start with the song. They start with scales: one note at a time, in order, at a volume that cannot crack, and the voice is rebuilt on notes it can hit. The song comes later, and it comes because the scales were sung. The 0.01-lot month is the scales. The plan's trade at full size is the song, and nobody rebuilds a voice on the song, because the song is where it broke, and it will break there again if the scales are skipped.

This paper is locked

Read next