I'll begin this thread by stating that I'm not new to Forex. I've been trading for seven + years and remain humble when saying not all have been lucrative. The early years and some in between seem to take it's toll on accounts and traders minds both. I'd question any trader that claims to have been successful out of the gate. If there is one thing that I had to come to grips with while trading Forex that most people who do not trade will not understand and will in most cases try everything in their power to aviod admiting is that I am a LOSER. This may seem strange to some but for those that trade Forex and understand what it take to remain trading year after year will get is that if you are not a loser in Forex you will never be consistant in growing your account.
I did not say I'm a failure. No that is something entirely different and I am not here to write about that. Those of us that keep the passion through all the up and downs are not that at all. What I'm talking about is learning how to lose. It is quite foriegn to try to understand this concept of loosing and espeacially being good at it. Forex is a complete different reality. The ideas of winning and losing are so much different that I had to alter my thoughts about what it means to lose in Forex compared to life outside of the markets.
Firstly, losing trades are part of trading. Thier unavoidable and everyone has losing trades. Our minds have a hard time grasping this reality at first but it's true. I have not seen an indicator yet that makes closing a losing trade easier for a trader nor have I met a broker that calls to console you and encourage you to close that losing trade that is evaporating your account. It is all up to the individual trader to learn how to lose and understand that it is okay to lose small because then you will not have to spend your time trying to re-build your account but instead add profits that are just a tad larger than the losses you are happy to take.
I believe the key to this is to recognize quickly when a trade is not working, dot not hesitate in re-evluating the trade and quickly dump it if it is not working your favor. Small losses will turn into large ones fast enough. Trust in that. The reward will be in seeing how quickly a small loss can be recouped and profit earned. That is reward in itself.
KEEP YOUR LOSSES SMALL AND EVERYTHING ELSE TAKE CARE OF ITS SELF.
I did not say I'm a failure. No that is something entirely different and I am not here to write about that. Those of us that keep the passion through all the up and downs are not that at all. What I'm talking about is learning how to lose. It is quite foriegn to try to understand this concept of loosing and espeacially being good at it. Forex is a complete different reality. The ideas of winning and losing are so much different that I had to alter my thoughts about what it means to lose in Forex compared to life outside of the markets.
Firstly, losing trades are part of trading. Thier unavoidable and everyone has losing trades. Our minds have a hard time grasping this reality at first but it's true. I have not seen an indicator yet that makes closing a losing trade easier for a trader nor have I met a broker that calls to console you and encourage you to close that losing trade that is evaporating your account. It is all up to the individual trader to learn how to lose and understand that it is okay to lose small because then you will not have to spend your time trying to re-build your account but instead add profits that are just a tad larger than the losses you are happy to take.
I believe the key to this is to recognize quickly when a trade is not working, dot not hesitate in re-evluating the trade and quickly dump it if it is not working your favor. Small losses will turn into large ones fast enough. Trust in that. The reward will be in seeing how quickly a small loss can be recouped and profit earned. That is reward in itself.
KEEP YOUR LOSSES SMALL AND EVERYTHING ELSE TAKE CARE OF ITS SELF.
