Psychology gurus say to take our losses and don't beat yourself up over them. Some 'Pro' traders say the same, "not every trade is going to be a winner, get over it and don't deviate from your plan". And "stay disciplined". "Take every trade that shows a setup", is the order of the day and if you miss one, hesitate or freeze up, then you are going to upset the laws of probability and you won't have the edge your system is supposed to give you. Your 'edge' is likely to be a simple system where the rules are easy to follow and therefore, easy to execute. The psychology gurus say, this is good as now you can concentrate on not worrying about being scared of trading, or thinking too much about your technical analysis, but rather think about purely the trade execution, "just take all the trades".
Others however, say " select A++ trade setups only", and "Don't worry about win/loss ratio because, if you are more selective and focus on the best trade setups only, you are unlikely to fail". Such setups usually require a lot more discretian. For example,does the trade have a bearish candle rebounding off the resistance level? Does this resistance level support the 50% fib level? is it going with or against the trend? Do we have trendline support at this level? Is it also supported by a SR area at a lower time frame etc etc? The A++ trades are usually the ones with the more browny point criteria. We are told that the more flashing green lights, the more A++ this trade will be, and the more likely we are to be right.
Some psychology gurus tell us its wrong to concentrate on being right, as this will cause untold psychological damage to the trader's mind set.
Some trader pros tell you complexity is to be avoided and to understand the simplicity of price action. Some psychology gurus however, tell you that people tend to want simplicity and easy money, and to avoid simplicity.
Others will tell you trading requires hard work. Others will tell you thats a myth so that you buy into a guru's support and e-books/courses.
Some say, randomness of the market is nonsense as patterns and cycles exist. Others will tell you randomness of the market is important to understand in that not every trade will be a winner, and stress the importance of dealing with losses etc etc etc. And, so we come full circle to the law of probabilities again...because we are told the probability of every trade being a winner is not possible and its not right to try and be perfect in the market because perfection is not possible in an imperfect market that is ruled by randomness, and despite patterns and cycles, there is no way of knowing whether your trade will be wrong or right, despite how much work you put into evaluating the market prior to your entry.
And of course, there is your Money Management . ..well thats another game in itself because its all related to probabilities, cut your losses and let profits run, whilst others tell you make your trades breathe, give your stops plenty of room etc etc.
I could go on. Thankfully I won't. But it makes you realise, no wonder people seek religion in the forex, those holy grails!, getting pushed from pillar to post in the trading learning environment is all part of the learning curve. Bumping into those different perceptions, from the psychologist, to the instituional trader, to the forex educater - a 'striangulation' effect on the newb takes place leaving him/her gasping for pure market oxygen, but is instead weighted down by the heavy cloak of the tricks of the marketer, dodgy brokers and fabulous/rotten indicators and the blind leading the blind (those well meaning newbs extending their not so confident hand to you).
Others however, say " select A++ trade setups only", and "Don't worry about win/loss ratio because, if you are more selective and focus on the best trade setups only, you are unlikely to fail". Such setups usually require a lot more discretian. For example,does the trade have a bearish candle rebounding off the resistance level? Does this resistance level support the 50% fib level? is it going with or against the trend? Do we have trendline support at this level? Is it also supported by a SR area at a lower time frame etc etc? The A++ trades are usually the ones with the more browny point criteria. We are told that the more flashing green lights, the more A++ this trade will be, and the more likely we are to be right.
Some psychology gurus tell us its wrong to concentrate on being right, as this will cause untold psychological damage to the trader's mind set.
Some trader pros tell you complexity is to be avoided and to understand the simplicity of price action. Some psychology gurus however, tell you that people tend to want simplicity and easy money, and to avoid simplicity.
Others will tell you trading requires hard work. Others will tell you thats a myth so that you buy into a guru's support and e-books/courses.
Some say, randomness of the market is nonsense as patterns and cycles exist. Others will tell you randomness of the market is important to understand in that not every trade will be a winner, and stress the importance of dealing with losses etc etc etc. And, so we come full circle to the law of probabilities again...because we are told the probability of every trade being a winner is not possible and its not right to try and be perfect in the market because perfection is not possible in an imperfect market that is ruled by randomness, and despite patterns and cycles, there is no way of knowing whether your trade will be wrong or right, despite how much work you put into evaluating the market prior to your entry.
And of course, there is your Money Management . ..well thats another game in itself because its all related to probabilities, cut your losses and let profits run, whilst others tell you make your trades breathe, give your stops plenty of room etc etc.
I could go on. Thankfully I won't. But it makes you realise, no wonder people seek religion in the forex, those holy grails!, getting pushed from pillar to post in the trading learning environment is all part of the learning curve. Bumping into those different perceptions, from the psychologist, to the instituional trader, to the forex educater - a 'striangulation' effect on the newb takes place leaving him/her gasping for pure market oxygen, but is instead weighted down by the heavy cloak of the tricks of the marketer, dodgy brokers and fabulous/rotten indicators and the blind leading the blind (those well meaning newbs extending their not so confident hand to you).
but that is where I am at right now in my trading.Anxious to see some of the older guys posts.
