dont fall in love with your daily return | Forex Factory

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dont fall in love with your daily return

  • #1
  • First Post: Jan 4, 2008 3:38pm Jan 4, 2008 3:38pm
Folks,

a quick point on emotions

Dont fall in love with making 4%
in a day. If you're up 50 pips, dont fall in love with that.
If you're account just broke 100K or whatever, dont fall in love
with that either.

If you do, you will be trading differently out of fear or greed.
This is especially tempting at the end or beginning of a
week, or if we behind a little. Friday afternoons
and sunday evening will kill you.

We start making trades so we can reach a certain level
or make a daily quota, or whatever. ...INSTEAD of
making good trades!!!

Dont do this. And if you do do it, try to catch yourself
before you lose too much money. I caught myself
doing this at the end of this week and it was
hard to stop myself from trading but eventually
I shut down the computer with some respectable
gains since Sunday.

Trading this way, to reach a certain goal, can roast your
account. Just take good trades, follow your system
and be happy with whatever the market brings
you at the end of the day, week, month...

Keep developing systems and try to improve but don't
get caught up in trying to force the market to give
you a certain return.
  • #2
  • Jan 4, 2008 3:40pm Jan 4, 2008 3:40pm
Quoting ChesterB
Folks,

a quick point on emotions

Dont fall in love with making 4%
in a day. If you're up 50 pips, dont fall in love with that.
If you're account just broke 100K or whatever, dont fall in love
with that either.

If you do, you will be trading differently out of fear or greed.
This is especially tempting at the end or beginning of a
week, or if we behind a little. Friday afternoons
and sunday evening will kill you.

We start making trades so we can reach a certain level
or make a daily quota, or whatever. ...INSTEAD of
making good trades!!!

Dont do this. And if you do do it, try to catch yourself
before you lose too much money. I caught myself
doing this at the end of this week and it was
hard to stop myself from trading but eventually
I shut down the computer with some respectable
gains since Sunday.

Trading this way, to reach a certain goal, can roast your
account. Just take good trades, follow your system
and be happy with whatever the market brings
you at the end of the day, week, month...

Keep developing systems and try to improve but don't
get caught up in trying to force the market to give
you a certain return.

How can you post your own thread ? Do you know the answer ?
  • #3
  • Edited 6:51pm Jan 4, 2008 3:53pm | Edited 6:51pm
.
  • #4
  • Jan 4, 2008 5:35pm Jan 4, 2008 5:35pm
I couldn't agree more ChesterB. Don't get caught up with the destination - just enjoy the Forex journey!
  • #5
  • Jan 5, 2008 4:15am Jan 5, 2008 4:15am
When I trade, I use the following understanding:

I trade it as if it was a sporting event. Do well and celebrate. The next day, forget the win and concentrate on that next trade as if the previous trade did not happen.
  • #6
  • Jan 5, 2008 4:17am Jan 5, 2008 4:17am
Quoting WHTenn
I look it as if it was a sporting event. Do well and celebrate. The next day, forget the win and concentrate on that next trade as if the previous trade did not happen.
Good analogy
Carpe Divitiae
  • #7
  • Jan 5, 2008 4:40am Jan 5, 2008 4:40am
Quoting fsiltd
Good analogy
Thank You!
  • #8
  • Jan 5, 2008 9:23am Jan 5, 2008 9:23am
It's true, although "falling in love" might not be the way I would describe it. It's more like putting undue pressure on yourself to reach an arbitrary goal.
  • #9
  • Jan 5, 2008 9:46am Jan 5, 2008 9:46am
YES !!! - i know the feeling well. By 9.00pm Thursday evening i was 96 pips up having done a trade Wed and
Thurs, and i immediately thought " just 4 pips tomorrow
and i'll be a 100 pip/week trader -or - better still 54 pips
and then it'll be a 150 pips".
As you can guess yesterday i
suffered BIAS (brains in a*** syndrome) and i gave back
50 points with my SL being hit.
  • #10
  • May 29, 2008 12:36am May 29, 2008 12:36am
yep..i think my main prob till now,i always fall in love lol..hope i can get more patience later
  • #11
  • May 29, 2008 8:44am May 29, 2008 8:44am
nicely put

but why not fall in love with your dough ?
but i think folks out there get the gist
{Promotion Removed}
  • #12
  • Last Post: Jun 10, 2008 8:58am Jun 10, 2008 8:58am
This is very difficult to do. I find it very challenging not to love the last gain so much that your fear of losing it has a detrimental effect on your performance during the next trade. Today I got a 1.5% gain during asia. I had a bigger target but I closed early and that turned out to be the right thing to do. During london I took another trade which achieved a 1% return but then began retracing and eventually went to within 2 pips of my stop wiping out the earlier trades gain. Things were looking bad for the trade and I was extremely tempted to cut it as soon as it gave back a few pips. finally it gave all the lost gains back and I wanted to cut it again I was so happy to have my returns back. I managed to resist and the trade went on to achieve target and added 3% to my original 1.5% gain for the day. I would have been better not to watch but had I done that earlier the first trade would have lost. Im hoping that it will get easier with time
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