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Need suggestion to improve skill

  • #1
  • First Post: Oct 27, 2008 6:01am Oct 27, 2008 6:01am
Hi
I have been trading forex for 2 years, the 1st year was totally lost. After the 1st year, I find a way to trade which I was using Support & resistance. For the 2nd year, the profit is now $800 using 0.1 lot per trade. I am happy for this result, at least I trade from losing profit and now is gaining profit. However, I would like to go to next level on how to improve my skill.

Because I am using support & resistance, there's no mechanical indicator or mechanical way for me to entry my order. All of the entry, I am using my experience watching my chart!

Now, I find my problem on trading is, sometimes, when I win 3 in a row, my emotion are getting higher, I will enter a trade without any reason. And because of that, I will lose out my profit( there's 2-3 times, I lose half my profit), since I am not using high R:R ratio.

Now, I don't know what should I do, should I trade for bigger lot to gain more profit, or should I find another way to trade? Thx for help
  • #2
  • Oct 27, 2008 6:45am Oct 27, 2008 6:45am
It seems to me you answered your own question. You must stop letting your emotions get in the way of your trading. If you let your emotions override your brain then your second year won't be much better. Never trade for no reason, that is gambling. Stick to your rules and don't make trades that are not according to them. If you have no rules then you need to make some. My suggestion is don't try to advance to the next level until you become consistent with your trading. Consistent gains is what will make you a better trader. Don't forget that if you increase lot size you increase the amount you risk while having to set stops closer. With candles moving 30-100 pips depending on the pair you trade, your stops become very important. Too shallow and you will be consistently stopped out and may as well just give your money to the broker.

As far as the indicator, if you use mt4 then this site may help you find what your looking for. http://www.forexproject.com/forex-documents/
I hope this helps. Good luck to you in getting better.
  • #3
  • Jun 4, 2013 7:25am Jun 4, 2013 7:25am
I agree be patient, if you are making money then you start to feel some emotional intensity i would say that is due to a subconscious belief about not deserving money or being fearful of losing it. Either way i recommend you look up "EFT" (Emotional Freedom Technique) and apply it whenever you feel this emotional imbalance.

Also understand how much money you are comfortable losing, ask yourself if i was to burn $100 right now would it affect me? Keep asking until you realize your personal risk threshold
  • #4
  • Jun 4, 2013 11:44am Jun 4, 2013 11:44am
Quoting carforum
Hi I have been trading forex for 2 years, the 1st year was totally lost. After the 1st year, I find a way to trade which I was using Support & resistance. For the 2nd year, the profit is now $800 using 0.1 lot per trade. I am happy for this result, at least I trade from losing profit and now is gaining profit. However, I would like to go to next level on how to improve my skill. Because I am using support & resistance, there's no mechanical indicator or mechanical way for me to entry my order. All of the entry, I am using my experience watching...
The answer lies within your question. Now that you have rectified your mistakes its time that you plan for actions to be taken to solve your mistakes so that you can increase your performance.
  • #5
  • Jun 4, 2013 12:15pm Jun 4, 2013 12:15pm
When I started using smart trader 2.0 on Dialy chart I found more logic in markets and money as well (smart trader always shows you important zones where better to trade from day to day)
Gold Annihilation System
  • #6
  • Jun 4, 2013 12:38pm Jun 4, 2013 12:38pm
The only problem that many traders face is emotions. You have a good system using which you can make money and also consistently, so all you need is a good trading plan and then strictly follow it no matter how tempted you are to enter any trade.
  • #7
  • Jun 4, 2013 2:58pm Jun 4, 2013 2:58pm
One: Get rid off the emotions,
Two: Try to adopt a more disciplined approach, one built on strategy than just your impulse..
Three: Keep track of all trades, monitor your strategy and review the results
Good luck!
  • #8
  • Jun 5, 2013 3:08am Jun 5, 2013 3:08am
Quoting Forexnuts
One: Get rid off the emotions, Two: Try to adopt a more disciplined approach, one built on strategy than just your impulse.. Three: Keep track of all trades, monitor your strategy and review the results Good luck!

Yeah Agree.. The best thing is to develop a good training plan directed at these key areas.
  • #9
  • Jun 5, 2013 3:38pm Jun 5, 2013 3:38pm
Quoting Alanamc
{quote} Yeah Agree.. The best thing is to develop a good training plan directed at these key areas.
Yeah, and one of the ways to get the emotions under control is to practice some meditation..you need not believe in the ideology but meditation works every time and as a bonus, it helps to control that stress..
Of course, it is not mandatory but if you need to keep your emotions under control, this is one solution you can go for..
  • #10
  • Jun 9, 2013 2:15am Jun 9, 2013 2:15am
One can only improve himself by trading on demo accounts. If you have to practice in a demo account, then ti will be difficult for you to maintain profits in your real account. So make yourself good in demo if you want to win in real account.
  • #11
  • Jun 9, 2013 2:56am Jun 9, 2013 2:56am
The outcome of any trade is a random event.
There is very little you can control.
As a matter of fact there is only 1 thing.

Risk

That is the only skill that can be improved because that is the only thing that is in your power to control.
  • #12
  • Jun 9, 2013 7:26pm Jun 9, 2013 7:26pm
Almost all are bullshit answers so far.

Emotions are the key to your success, not the reason for your failure. It is impossible to block your emotions. Our emotional brain is hardwired as the Command and Control centre of our brains. Logic is a limp-dicked tool that our emotional brain uses sometimes.

Think of it this way. Our logical/rational brain struggles to add up a series of 5 digit numbers; yet our emotional brain can appreciate the flood of MEGA-pixels of beauty that flood our brain while watching a sun-set as we love the feeling of the sun on our skin.

Sure there are negative emotions; fear and greed being the main 2. But they only have power over our logical brain because emotions are what control us. And they are only the negative emotions. The point is to work WITH the emotions that are positive for our trading. Gain a sense for your trade entries.

Anyone who says to block your emotions is just an idiot who read a book. And you can bet they have never made a success in Forex, or anywhere else for that matter.

Support and resistance are fundamental to trading. MOST of my success comes from Counter Trend trading from S&R levels.

And I have made a TRUCKLOAD of money doing so.

There is the herd, and they have their mentality.

If you are going to succeed, it is because you break free from the noise of the rabble and think in contrary terms.
  • #13
  • Jun 9, 2013 8:11pm Jun 9, 2013 8:11pm
Really? Sure, if you want to believe that, go ahead. After all, everyone has a right to their opinion so be as emotive as you need to be..
But you are right about one thing though, the contrary bit - exercising it right now by agreeing with you and it's doing me wonders..
  • #14
  • Jun 9, 2013 8:17pm Jun 9, 2013 8:17pm
Quoting Forexnuts
Really? Sure, if you want to believe that, go ahead. After all, everyone has a right to their opinion so be as emotive as you need to be.. But you are right about one thing though, the contrary bit - exercising it right now by agreeing with you and it's doing me wonders..
First you say to get rid of your emotions. Impossible.

Next you say to meditate. Definitely, by long distance walking is my way.

It is emotions that control the brain. Plato was wrong. We are emotional beings, and logic is merely a tool our emotional brain uses.

Fighting emotions is a lost cause. TUNING IN TO THEM is the path.
  • #15
  • Jun 11, 2013 3:24pm Jun 11, 2013 3:24pm
No one said you need to exorcise the emotions out, just that you need to tune them out in order to avoid making mistakes..
On meditation, at times of stress, it does work (personal exp) but guess that depends on your perspective.
Come on, Plato -wrong? That's a new topic and we need a separate thread for that but personally, no one can be that stoic..personally would love to meet someone stoic and cold as ice..
I guess emotions works for some, certainly seems to work for you but for me, it is sans emotions that I am able to trade well..
This is what is great about this forum, opposite ends of a view yet we can meet and discuss this in open..
I do have a query, how do you handle your negative emotions? Any particular exercise?
  • #16
  • Edited 4:13pm Jun 11, 2013 4:02pm | Edited 4:13pm
Quoting Forexnuts
No one said you need to exorcise the emotions out, just that you need to tune them out in order to avoid making mistakes.. On meditation, at times of stress, it does work (personal exp) but guess that depends on your perspective. Come on, Plato -wrong? That's a new topic and we need a separate thread for that but personally, no one can be that stoic..personally would love to meet someone stoic and cold as ice.. I guess emotions works for some, certainly seems to work for you but for me, it is sans emotions that I am able to trade well.. This is...
Actually almost all ebooks and authors on the subject of trading talk of the imperative of blocking out emotions; which I argue based on science is impossible. The emotional brain is now known to be hard-wired as the Command and Control centre of our brains.

Plato is wrong. He advocated that emotions are evil and must be stifled, that only logic or rational thinking are good and virtuous. Yet it is now known that our creativity in the arts for example flow from our emotional brain. And we now know that our logic wiring can only handle a tiny amount of data processing at any moment in time.

We cannot think of emotions as only being the negative of greed and fear etc. Gaining a "sense" for the exactly timing of the market as a feeling is absolutely appropriate and is a very positive emotion to trade with.

As for my personal ways to block out the negative emotions in my trading; that's not complicated. I walk 3 hours a day, most especially when I feel I am distracted and just not in the zone I need to be in.

I talk about it this way. We have our mind (logic), body (brain transport and energy source) and spirit (emotions/feelings). They get out of balance. Most often it is our body that builds up too much energy and tension, and drags our mind and feelings out of sync. When all 3 are in harmony, we are capable of greatness. When they are out of balance, we invite disaster. Walking long distance gives me thinking time, while it slowly releases its tension and pulls my body's energy back into balance with my mind and spirit.

Perhaps it goes without saying, but any trading while not entirely sober and drug free is stupid. But also trading immediately after huge meal is not smart as well. A bloated belly will take you out of the zone you need to be in for trading. We need our total combine faculties to trade well.

I NEVER trade unless I am at the very moment where I just KNOW it is bang on the best time to trade. Not just because my 2 primary indicators tell me too. Not because of any fundamental or technical reasons as such; though they are are definitely part of it. Think of it as a "convergence of emotional knowing meeting a logical decision".

I only trade when I am fully tuned into the market from all my total sources of information and I have an overwhelming sense that I KNOW it is time to pull the trigger on a trade.
  • #17
  • Jun 11, 2013 5:55pm Jun 11, 2013 5:55pm
I agree, it's impossible to block out emotions. The best we can do is accept our emotions. This acceptance is a form of mindfulness, and being completely aware of what is going on inside and outside of us, we get into the zone where we KNOW and FEEL that everything is aligned. That is the best mindset for trading.
  • #18
  • Edited Jun 12, 2013 8:08am Jun 11, 2013 6:11pm | Edited Jun 12, 2013 8:08am
Quoting loleno
I agree, it's impossible to block out emotions. The best we can do is accept our emotions. This acceptance is a form of mindfulness, and being completely aware of what is going on inside and outside of us, we get into the zone where we KNOW and FEEL that everything is aligned. That is the best mindset for trading.
EXACTLY right mate.

And stimulants like tea and coffee can put us off, just as can depressants like alcohol etc. As said, for me walking is something I do to balance the total of what is me. And I don't trade after a huge meal and feel bloated.
  • #19
  • Jun 12, 2013 1:45am Jun 12, 2013 1:45am
simple answer in your case - stop trading after 3 wins and take the rest of the day off
https://linktr.ee/Soultrader
  • #20
  • Jun 12, 2013 7:52am Jun 12, 2013 7:52am
Quoting dancingphil
{quote} EXACTLY right mate. And stimulants like tea and coffee can put us off, just can depressants like alcohol etc. As said, for me walking is something I do to balance the total of what is me. And I don't trade after a huge meal and feel bloated.
I too walk for similar reason. Great minds think alike
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