Should I exit from stock markets in the face of continuous losses?

When I get losses on a continuous basis, should I stop & exit trading in stock markets? I’m getting emotional & booking losses on regular basis. They recover back again ! Finally I’m losing my money… Any solution for this?

2 Likes

Yes, I think it would be a good idea to get out of the market for some time like a “cooling period.” Trading is very addictive and successful trading is a combination of right psychology, good money management, and good trading system, in that order. Hence, you might want to get away from the market, get into the right frame of mind, and then analyze what is going wrong. Don’t worry, market will always be there. So come back later armed with better preparedness.

5 Likes

Two basic rules: (1) if you don't bet, you can't win. (2) If you lose all your chips, you can't
bet.
Larry Hite

So yeah, if you are at a point where you are losing too many chips, take a break, forget about your past losses, learn from your mistakes, make a trading a strategy and come back again to give it a shot. But yeah, break is definitely good. 

7 Likes

Yeah, start focusing on some study materials, chart analyses and information collection on various strategies etc., This you could do for a month or so and they start again with small capital.

one of the best quotes i’v ever heard. Always in my mind and helps me when i’m about to take a risk in trading/ real life.