After 10 months of trading (and actually making a tiny little bit of money, which seems quite a result after reading lots of other posts 
) I have possibly 
started to crack it.
Iīve realized that I bought a lot of psychological baggage to trading which has been holding me back;
1. Believing I couldnīt take a loss. I use to be a biker and in that take risk mitigation was as close as possible to risk elimination; just one accident could kill me. But trading forex is more like climbing a greasy pole; you will slip down, you just have to move up a bit more. I tried all sorts of bizarre hedging strategies all because I couldnīt bare to see my balance reduced. Now I aggresively close losing positions; the market has told me Iīm wrong so why wait to find out how wrong?
2. Scarcity thinking. As kids we all probably at some point competed with brothers/sisters/friends for the last biscuit or sweets etc. so we have it ingrained that we have to take opportunities as soon as possible. I took this into forex and every time the market moved I felt I was missing out, tempting me into breaking good entry rules. Now itīs dawned on me , the market isnīt going to īrun out`! It will always be there 24/5 with plenty more opportunities coming along. Missed that 90 pip move? Donīt sweat it, another one will come along and the law of averages means eventually youīll catch one. Itīs a never ending party, so go in and dance only when you see the really nice girl.
3. The need to innovate. In most business it pays to be different, have a USP, stand out from your competitors. But in the market you want to be doing what everyone else is doing! Why try to guess to top of a rally? Let some other mug call the top, then join the stampede on the way down. Falling market should be finding resistance? Well then let it really find it before going long. Market choppy and indecisive? Go and put the kettle on. Same goes for strategies. Found an amazing new strategy using unique indicators? Why on earth use something unique in the pack mentality of the market? The strategy I read most about is using support/resistance and price action, so thatīs what Iīm going to use. If it was using star signs and wind direction, Iīd be using that.
Anyway, thanks to FF for the cartharsis of forum posting, and I hope this is useful to someone.
) I have possibly started to crack it. Iīve realized that I bought a lot of psychological baggage to trading which has been holding me back;
1. Believing I couldnīt take a loss. I use to be a biker and in that take risk mitigation was as close as possible to risk elimination; just one accident could kill me. But trading forex is more like climbing a greasy pole; you will slip down, you just have to move up a bit more. I tried all sorts of bizarre hedging strategies all because I couldnīt bare to see my balance reduced. Now I aggresively close losing positions; the market has told me Iīm wrong so why wait to find out how wrong?
2. Scarcity thinking. As kids we all probably at some point competed with brothers/sisters/friends for the last biscuit or sweets etc. so we have it ingrained that we have to take opportunities as soon as possible. I took this into forex and every time the market moved I felt I was missing out, tempting me into breaking good entry rules. Now itīs dawned on me , the market isnīt going to īrun out`! It will always be there 24/5 with plenty more opportunities coming along. Missed that 90 pip move? Donīt sweat it, another one will come along and the law of averages means eventually youīll catch one. Itīs a never ending party, so go in and dance only when you see the really nice girl.
3. The need to innovate. In most business it pays to be different, have a USP, stand out from your competitors. But in the market you want to be doing what everyone else is doing! Why try to guess to top of a rally? Let some other mug call the top, then join the stampede on the way down. Falling market should be finding resistance? Well then let it really find it before going long. Market choppy and indecisive? Go and put the kettle on. Same goes for strategies. Found an amazing new strategy using unique indicators? Why on earth use something unique in the pack mentality of the market? The strategy I read most about is using support/resistance and price action, so thatīs what Iīm going to use. If it was using star signs and wind direction, Iīd be using that.
Anyway, thanks to FF for the cartharsis of forum posting, and I hope this is useful to someone.
