Suppose you’ve just experienced an enormous losing streak. What are you more likely to do next?

Are you the form of trader who becomes so depressed that you just are unable to take clear foreign currency trading signals, or are you the form of trader who’s in a position to easily shrug it off?

Irrespective of how long you’ve got been trading, there’s all the time the danger of experiencing performance anxiety.

When things don’t go your way, there’s a likelihood that you just’ll grow to be overly pessimistic and see the situation as an indication that you just are a failure. In consequence, your trading performance dwindles much more, eventually leading you to quit.

This is clearly an issue. But like all problems, there’s also an answer. As a substitute of focusing your weaknesses, take a look at it under a latest light – a process called positive reevaluation.

For illustrative purposes, let’s take a trader who has a habit of using stops which might be way too tight because he’s afraid of losing an excessive amount of.

As of late, he’s getting stopped out lots and finally ends up with an extended losing streak. This makes him much more scared of putting trades on and losing extra money. He now finds himself stuck in a really vicious cycle that’s freezing him up.

You might say that this forex trader’s attitude towards trading is negative, but through the technique of positive reevaluation, he can actually use this underlying weakness as a strength.

Slightly than specializing in the fear of losing, the trader can use this fear to positively reevaluate his trading and see it as a position-sizing problem. He can cut down on his position sizes so he can take even smaller risks while at the identical time widening his stops.

In case you can twist a perceived negative thought, tendency, or trait right into a positive one, you may get it to give you the results you want somewhat than against you.

Let’s say that as a trader, you’re easily overcome with emotion when your trade starts to go against you. In consequence, you are inclined to widen your stop when your forex trade is losing.

A little bit of positive reevaluation can show you how to shift focus away from how this tendency holds you back and towards how it may well show you how to.

Since you understand that these emotions sprout when market conditions grow to be unfavorable on your trade, while you end up wanting to widen your stops, you may actually use it as a signal to chop losses or trim your position.

Principally, as an alternative of letting it take over you, you find yourself using your emotions as a signal to make higher trading decisions.

So that you see, taking a look at an issue from a special angle can go a great distance in helping you improve your foreign currency trading.

It may give you latest insights on approach an issue, and heck, it may well even show you how to turn your perceived weaknesses into strengths!