Everyone talks about profits, but people don't prefer talking about loss. Because it's painful and gets into your fearful emotions, won't enjoy that. But still, it is a part of trading and we will talk about it.

How do trade losses recover?

So I will talk about it in detail. You'll need to do four things to recover from losses, We need to do four things First of all we need to work on the four different segments.

The first segment is strategy meaning total charts everything will be related to the charts. The second thing on which we have to work is maths, that is calculation not luck. The third thing that will help us is the thinking process, which we call psychology.

And the fourth thing we have to try is something different. Something different means Now we know about it. You need to take a break now. Meaning you need to take a break now. You have to take a break if possible for a minimum of fifteen days. It would be much better if you could take twenty days or whatever suits you.

Taking a break of fifteen to twenty days is compulsory. Meaning if you are still at a loss like Rs Twenty-five thousand, Rs One lakh, Rs Three lakh, or Rs Five lakh depending on your capital you have to stop. Because whatever you do, it's going wrong. So why ruin your money more?  

Consider a pot, if there's a hole then no matter how much money you add I mean no matter how much water you add, the pot won't be filled. Just like that, you will keep losing your capital until you take a step back stop, and think.

I'II help you with it. First of all, something different. For something different, you have to find a mentor. Now obviously by mentioning my mentor, you might think that I am trying to sell my course. No! You will also find this book on Amazon, the name of this book is Trading in the Zone or if you are smart then you can even download it online.

So you have to read this book and the new content you get from these fifteen-twenty days we'll do the other three things too But this new content you get will change your life. If you don't have time to read the book, then I will give you a zest now.

It's written in the book that a person can't be called a trader or doesn't become a trader until they don't do one thing they don't accept that whenever they take a trade, no matter how good it is how good the trading setup the technical setup is I will not be overconfident of whether I will gain profit or loss.

It is mentioned in the book that a person who can't accept that they can face a loss while taking up a trade cannot be a trader. This means the one who takes a trade will say This will be a profit for sure Many people are like "Look I have taken a trade it be a profit for sure". 

It's true sometimes it'll be a profit but then we will become overconfident. So the jest of that book is that until you accept this fact no matter how good your technical setup may be if you become overconfident and don't follow the maths does gambling one day everything will go.

So first of all you have to accept that whichever trade I choose I don't have any control over its outcome. I only control the entry and exit of that trade.

Other than that dropping this and taking this up is not in my hands. And we all think like this itself. We all sit down with our call thinking that the market will go up then it goes down and you hold till your expiry and everything becomes zero.

This happens a lot of time and this is the biggest reason for your over-trading and revenge-trading of your loss. So the first point as a trader you don't have to become an astrologer you have to become an analyst.

We have to analyze and we don't know about its outcome profit can also happen good but is loss then you can't ruin the maths that's all. So I hope you understand the zest of the book is that as a trader I don't know the outcome until you accept that you can never move forward.

So look it's this big book so obviously there will be at least ten lessons as such. I told you the most important one. There are other important lessons in it too I want you to read this book.

You know anyone can join a course if he has no money issues but if you have money issues then what you should do is buy this book invest in it and learn from the book.

Now we will learn about the market

Do you know you'll get to have a look at your order book in your Demat account What you have to do is open your order book. Open whatever trade you have taken.

In your order book, it might be written Nifty as its strike price or reliance or you know USD/JPY whatever it is and there'll be time also.

So when you see the time and pair open it. You have to open your chart You have to look at your old trades taken seven days ago was it my fault or was it the market's fault the market is never at fault.

What happens is that when it is not our fault but is a loss then it's called a good loss. That will happen in life no one can control that. We can control the bad loss.

So what you have to do is take out the trades of the previous seven days and convert how many good losses How many bad losses I guarantee that you will be shocked after seeing that your loss is much more than a good loss.  

So the order book is the most important thing you have to open that. Open the order book analyze just find out one thing Was it my fault or not in this trade? Now in all those which was my fault can I make it right least you get a point of development.

I hope you understand what we have to do. We have to go to our fourth point something new First point we have to finish the book trading in the zone second point you can join some courses.

Join some courses where you get complete information. Third point what you can do is analyze your order book for the last seven days I short this trade got profited. Take the losses and leave the profit trades you won't learn anything from profits. You have to learn from the losses.

What is calculation?

New taders think that At times we place SL then it hits SL and later hits the target. So what do we do if we stop taking SL at all? We think that we can always recover from the loss.

So we panic Now what does maths say? If your account is Rs Thisty thousand or Rs Fifty thousand consider then make a rule that whenever the loss is beyond Rs three thousand in your life You 'II cut it. Meaning you can see that it didn't even touch SL no problem just cut it.

Now you are at a loss you are not normal now. You cannot afford more losses. If that person is already in profit then okay he can handle some extra loss. You don't do it. If you have arranged Rs fifty thousand and you think of Rs three thousand or Rs three thousand five hundred you won't think of a loss more than Rs three thousand five hundred ever in your life.

Whenever you see that P&L is going to be three minus cut it. You place a logical SL and everything but it's money. So there are two things you do firstly reduce the position sizing.

However, options traders don't have this option because he is an option trader. After all, his lot size is fixed at twenty-five fifty so we cannot reduce the position sizing there. Who'll take less than one lot?  

So when you practice with one lot and lose money from even that make a rupee limit cut when it reaches the rupee limit. And if you have Rs one lakh-Rs two lakh please stop it and stop doing that stupid thing.

You have Rs one lakh don't use Rs forty thousand-fifty thousand and trade with 1-2 lots. So people who have an option that you can down position down the position always because you recover what I said is that when you start trading after twenty days you have to give yourself an internship time Calling yourself a trader is itself so foolish of you. 

You have to say that you are a student I am an intern how much time can you give You can choose one month two months three months. The more time you give the better for you but your wish.

I am an intern for one month I am an intern for two months am an intern for three months. During these three months, you have to make a rule that I'II cut the trade. I'II I have one lakh but still, I knowingly use Rs twenty thousand-thirty thousand So I hope the second point is clear.

Maths calculation. You can reduce the position sizing if you can't then when it's red for more than Rs two thousand cut it. Come the next day.

And you come the next day you do not recover at all that day. Look where you have reached trying to recover.

What is psychology?

There's a lot in this chart. I can see this it depends on my thought process. I see a double top here I see a double bottom here I see a breakout after consolidation. 

There's everything in this example. I don't know if you can see this clearly or not. But what is psychology where our thoughts go to first of all? Your thoughts go to pain everyday morning.

I have to recover Rs two lakh Your mood turns off seeing this at the start of every day. I lost money oh man I have to recover money. Until your thoughts on recovery don't go away nothing can be done.

So you have to convert your thoughts to target. I give you some homework. You have to simply calculate you simply calculate the loss you faced to date. Let's say for instance a person faces a loss of Rs two lakh.  

This man everyday morning thinks about recovering this Rs two lakh so I have to make this amount x two = make Rs four lakh as the target.

So one has to understand this and use psychological factors of positive emotions because thinking and emotions two parts are there heart and mind so both should be aligned.

If you do these things in your life I am telling you you won't recover your loss in one day but I am assuring you that maybe within three -four or five months you have recovered your loss.