Those traders who already have quite a lot of experience in trading have noticed that after successful trading there comes a period when earnings on Forex decrease. This sometimes happens even in the trading of professional traders. Therefore, initially you need to understand that the fall in profits from trading is not a tragedy. You need to take this situation calmly. But this does not mean that the trader should stay idle and simply calculate his losses after a series of failed orders. He needs to make efforts to reverse the negative situation as quickly as possible and return to profitable trading.
Today I want to offer you a plan of action in case your earnings on Forex start to decline. Every trader should know about it, and apply if necessary.
Trader's action plan
A drop in trading income creates an uncomfortable psychological state. Therefore, first of all, a trader needs to take care of him. An indispensable condition for this is the complete cessation of trading for a while. However, this does not mean at all that you need to give up everything related to trading. The free time will be useful to spend on studying theory, reading books on trading in the market or attending any seminars.
After the emotional balance has been achieved, you can proceed to the next step - the analysis of the mistakes that led to a decrease in earnings. This is a very important part of the plan that needs to be addressed. Calm analysis of the causes of a series of unprofitable trades will allow to exclude their recurrence in the future. What should be considered all aspects, including psychological. Perhaps the reason for the failure was the applied trading strategy. Changing some of its conditions helps to solve the problem of falling income. Or perhaps the best option would be to create a new TS using some elements of the old trading system.
In order to prevent another drop in earnings, I strongly recommend drawing up a trading plan. He must provide for different options for the development of events in the market and the order of the trader's actions. The more detailed this plan is, the more benefit it will bring to the trader.
And the last step is to carefully consider methods to reduce risks in trading. As a rule, there are two of them: stop loss and compliance with money management rules. Including them in your trading strategy will allow you to avoid large losses. This means that forex earnings will eventually start growing again.