TAKING COUNTER TREND TRADES TOO SOON

You've just made a killing in the market, you are high on excitement and ready to do it again.  You enter your next trade set-up and you're stopped out. It has dampened your enthusiasm, but you still have most of what you have earned from the market.  You re-enter thinking if I got stopped out this way the market must be going the other way, but then you're stopped out again.  Looking at your profits that have now dwindled significantly, you're angry (which is exactly how they want you because when you are enraged you don't think and are easy prey) and you begin 'revenge trading' to bring your profits back, but things keep getting worst and you end the day off worst than you started........ 

How did this happen????????????

You have very clear rules that give you the edge, where did you go wrong??????????? 

Your error was not in understanding market cycles......Most of the times good trades don't come back to back.  There is usually a delay before you get the next really good set-up.  Once you make a good profit rest, go work-out, cook or play golf.

Once the market gives you profit, it is like a spoil child that let you play with their ball, they are quick to snatch it back....... In other words as soon as you earn profit, the market looks to snatch it back immediately.  Sometimes putting you in the chop for hours, days, weeks and even months. The chop is the hardest when you are a short term day trader.  Chops or range bound markets on a larger time frame can be traded quite profitably.  The only thing that you have to be careful about in range bound trading on the larger time frames is once price breaks out, it will break out like a sky rocket and you'd better be on the right side of the trade.

The market is in a downtrend, then it gives you a slowdown and a bullish engulfing candle and the right cross on your indicator.  Now you're excited and you jump in for the opportunity to sweeten your profits.  However the set-up quickly fails.............. Why because you were set-up. The chop and failed signals are the number one trapping places for professionals to set you up.

Antsy traders who are always eager to be in the market are the ones most likely to fall into these trapping pits..... While the market is falling and you're buying, someone who understands the rhythm of the market is shorting all that you are buying and taking your money in the process....

You must stay aware that you are trading the most savvy traders in the world and they are starving everyday, they have lots of luxurious needs that they need your money for.

How do you deal with this?????

WAIT FOR A PROPER TRADE SET-UP
FOLLOW YOUR RULES, YOU DESIGNED THEM TO PROTECT YOU
IF YOU GET A SUPER TRADE, TAKE A REST, BUT IF YOU GET TWO BACK TO BACK DEFINITELY REST
IF YOU ENTER A BAD TRADE CUT IT QUICKLY, IT IS SIMPLY A TRAP (ALWAYS USE WEALTH PROTECTORS)
WAIT AND WATCH FOR A BETTER TRADE SET-UP AND RE-ENTER
AND GIVE YOUR SELF A LITTLE TREAT AND A PAT ON THE BACK WHEN YOU HAVE SUCCESSFULLY NAVIGATED A TRADING DAY
                         NEVER STOP TRYING !!!

YOU CAN DO THIS(^_^)!

THE CATCH AND RELEASE TRADING PROFESSIONAL

 

In forex traders get into trouble because they have the wrong mentality.  They trade the "cling and hold method" and it gets them killed in the market.  Trading is a "Catch and Release" game.  Only hold a trade as long as it benefits you, if you catch the wrong trade, kill it like a rattle snake and start over.  

Most traders hold to bad trades for dear life in spite of the danger
 This is the wrong way to trade, if it can kill your account, let it go and look for a better trade.  (Write this somewhere that you can see it while you are trading (KILL IT BEFORE IT KILLS YOU). Only take the trades that you truly want.  That means only investing your hard-earned capital in a trade that is going to reward your patience and hard work. If it is a trick trade, simple cut it and follow market strength.  The sooner you cut it, the quicker you can recover and be on your way to profit.  

This is what most traders don't understand about the market, you only keep what you want and discard what you don't.  Trading is a catch release game............................. It is like going fishing for a Big Mouth Bass and finding a Water Moccasin on the other end of your fishing line; the smart fisherman would release that killer immediately.  Trading is the same way, if you catch a Big Mouth Bass, Salmon, Tuna, or Catfish, keep it.  It will feed you, but if you catch a shark, snake or sting ray, throw it back; it can kill you, and the longer you keep it, the more deadly it becomes.

Anyone can get in on the right side of the trade, but only pros understand the great advantage in cutting the line (a bad trade quickly) if there is poison on the other end.  Most traders let the snake bit into them and hold on hoping that the poison will not kill them.  That is just dumb, I know because I have done it a million and one times and that thinking killed me over and over again in the market.

Cutting a bad trade quickly keeps you in control and puts the power and responsibility for your trading into your own hands, instead of leaving you hopelessly at the hands of a merciless market. The market will either feed you or feed off of you.

Letting go of bad trades gives you the power to follow market strength into profit and build wealth.  Don't worry about taking small hits in the market, it is ok, there have been days that I have taken several hits and started the day off pretty deep in the red, but by the days end I was far ahead.  There are days that I have ended slightly behind, but I felt good about those days because I was trading(catching and releasing), releasing the poison.  Every trade will not be profitable and not every trade will be a home run, but there are the big reward times that the market will open her store house of the sweetest treasures; that is what you are saving, building and preserving your capitol for - those sweet days.

The biggest accomplishment in my trading is letting go of bad trades quickly.  It took me forever to fully comprehend the wealth building power at my disposal just from that one little secret alone.  Cling to the good, but discard the bad quickly.  Slow movement on your part could be deadly to your account.

Don't be afraid to let go, the wealth is there when you have the power to follow it, and it will reward your consistent discipline with a better lifestyle......





YOU CAN DO THIS (^_^)

 Real trading is about how well you handle the Rattle Snake, everything else is gambling.........





    













BANK FRIEND OR FOE?

We are always talking about banks and their calculated careful manipulation of the market, but is the bank really da looming boogie man??????

Yes, it is very true that the banks manipulate the markets making billions off of traders in the process, but it is equally true that the opportunity to make huge windfalls in the market would not exist without the liquidity that the banks provide. 

The banks have turned the forex market into a fairytale of  unlimited wealth and opportunity.  You can live a lifestyle trading that most people only dare to dream about, but don't for a second be under the illusion that they are going to allow you to just waltz in and load up on as much cash as your heart desires.  While there is 4 trillion dollars a day in the forex market give or take, the banks like any other business entity is looking to capitalize on as much of that money as possible.  It just so happens they have more power than most of us to make things happen that put the odds heavily on their side. 

Yes, it is their intention everyday to take your money, but it is up to you if they get it or how much of it they end up with.  In other words the banks are either feeding you or feeding off of you. 

You can never beat them in the market, it is their game and they have the power to make the rules.  The good news is that you can trail them and earn a very very nice living nipping at their heels.

The bank is your friend if you trade with the strength of that power, but it is a breaking force when you trade against that power.  Trade with the force that has the power to move the market, or trade against that power and be crushed, it is your choice.  Remember NO ONE EVER FORCES YOU TO HOLD A BAD TRADE, BUT THE BANKS LOVE IT WHEN YOU DO!! 
 

Whether the bank is Friend or foe is totally left to your interpretationDo they feed you or feed off of you?????

YOU CAN DO THIS (^_^)

A LOSS EXPLAINED

When you enter a bad trade, the longer you stay trapped (hold on to the bad trade), the more of the bank's money you buy or sell at ridiculous prices. 

Example...If they trick you into a sell position in a bullish market, the longer you hold that bad sell the more of their money you buy at more expensive prices, losing more of your money in the process.... 

Or if you are tricked into a buy in a bearish market, the longer you hold that bad buy the more of your money you sell at cheaper prices, and your money becomes less in the process.

You never stop that buying or selling until you close out, stop out or are margin called  In a bad trade you are getting deflated or inflated money, either way it is a BAD EXCHANGE and YOU LOSE!!!!!
  
DON'T EVER HOLD BAD TRADES, THEY ARE A RIP OFF !

TRADE A GOOD PLAN WITH STOPS!

YOU CAN DO THIS (^_^)!

YOU ARE WINNING AND THEY ARE STILL MESSING WITH YOUR HEAD!

 

Trading is a psychological warfare that even when you are winning, they are still messing with your head (manipulating your mind).  There are times like doji days when the market is so frustrating that you feel like your head is going to explode. When you crawl away, your emotions are so frayed and you are so battle scarred that you don't know what to do with all of that bottled up frustration and anger.

No matter how much you try to find the edge, it keeps alluding you.  You keep digging a deeper and deeper hole, losing more money,  and the pressure builds until your mind is tied in a knot so tightly that you lash out whether verbally or physically. After this kind of a day of brain-bashing, confidence-shaking, emotional upheaval cause by a choppy market; you are in a kind of market shell shock or psychological trauma.

I don't know all of the answers, but I have a few suggestions when you feel out-of-control.  First push your chair away from your screen and distract yourself with something more relaxing, stress relieving and fun.  Sometimes, you will have to take a day or two off just regaining your focus and rebuilding your confidence.

After you have created the distraction by dancing, working-out, meditating, visiting a friend, going to the movies, etc., come back to good solid forex education like this and reinforce what you know to be true.  Go study those tricky charts, watch videos, talk to other traders,-------DO WHATEVER IT TAKES TO HELP YOU REGAIN YOUR EDGE!

After they have given you a good spin in the blender, the market will usually trend again HARD, but so many traders are still in such a state of shock, panic and anger from the day/week of spinning that they miss the really good trend. 

The most important thing you can do during and after these times is to trade a good plan with consistent discipline even on losing days.  Bad trading days tempt you to abandon good, solid trading habits, but DON'T DO IT !  If you abandon a good plan,  when the market comes back - you won't trade it out of fear that the market is going to turn on you again.

The psychological effects of trading can be much more devastating than any amount of money that you lose, it is a sort of mental scarring that can take place after a really hard trading bout, therefore you must trade a good plan consistently.  Cut bad trades quickly and ALLOW YOUR WINNERS TO RUN!!! It maybe hard, but doing these things will give you the edge and KEEP YOU IN CONTROL during the hard times.

NEVER HOLD ON TO A BAD TRADE NO MATTER WHAT........CHOPPY MARKETS ARE SET-UP MARKETS!

YOU CAN DO THIS (^_^)!

MONEY IN YOUR POCKET IS BETTER


Money in your pocket is better than money in Your mind.  Many times we will not protect our capital because of the big money dreams in our minds, while losing real money out of our pockets to a trade that is moving further against us.  The market can be frustrating and tricky and most market set-ups are fake-outs, therefore it is vital to protect the capital You have for the  few times the market will give You legitimate profitable set-ups.  The challenge with the set-ups is that so many of them look legitimate, that is why they are fake outs.  If You spend 24 hours trading from a shorter term time frame, most of your entries will be bust, so it is imperative that You choose Your trade set-ups and times carefully.

There are times that are more likely to give You a trading advantage, like economic reports, the times in the market that your currency pair is most active; times of breakouts after consolidations, breakouts after consolidation in harmony with Your trend, reversal candles at resistance/support, etc.  Even with the best preparation, it is possible to enter a bad trade set-up; that is why You must be prepared to cut a bad trade when Your rules are violated and wait for another set-up.

  There are times that the market will act up so badly that most people will abandon a perfectly profitable system.  Since trading isn't hard, it must be tricky in order for You to lose money.  More people lose money in the market because of emotions gone awry than they do bad trading systems.  It is hard to sit and wait for a trade and get stopped out or be stopped out at breakeven, or to wait for a market that is choppy.  The market is going to move and find a direction, but what You don't know is when???????

Trading is not for the faint-hearted nor for the perfectionist.  If You are going to succeed as a trader, You must be tenacious and You must know that there is no perfect system.  There are just too many external factors involving too many human beings to make a perfect system.  The system is perfectly random, and looking for perfection or stability will tire You out fast.   Wearing Your emotions thin is the best strategy the forex market has and it works.  Remember the market can be crazy longer than You can stay solvent, so be sure to protect the money in Your pocket first even when You get tired and frustrated.  I hate the market games, but they are there and they are there to break You, but You have to decide how it is that You want to live and be willing to have the discipline it takes to enjoy that lifestyle. 

If You play, only play to win.  ALL OF YOUR MONEY IS VALUABLE, THEREFORE YOU CANNOT AFFORD TO LOSE IT.  THE ONLY WAY TO THRIVE IN THE GOOD TIMES IS TO PROTECT YOUR WEALTH DURING THE SCARCE TIMES. PROTECT YOUR WEALTH FIRST, WHEN THE MARKET IS CRAZY ZIP YOUR POCKET AND SIT IT OUT.  SOMETIMES THERE IS NO TRADE!

#1 PROTECT YOUR WEALTH (You can only build on what You have preserved)
#2 BUILD WEALTH (The market will eventually find direction and when it does, be there to ride the train all the way into the station)

YOU CAN DO THIS (^_^) !

WHEN THE MARKET IS CRAPPY PRESERVE YOUR CAPITAL !


There are times that no matter how good Your strategy or how hard You try, the market just will not cooperate with Your plans to get paper.  What You do in those times is more important to Your success than what You do in a good flowing market!

Why????????????????

Because what You do on those day can mean the difference between thriving in forex or having to fold Your hand and walk away from the table.  On days when the market is stubborn and uncooperative no matter how patient You are or how much discipline You exercise, YOU MUST PRESERVE YOUR CAPITAL.

Believe me, I know how hard and frustrating a market like that can be.  To stay through an entire session or sometimes a day and the market is just indecisive feels like a waste, and it can be easy to become discouraged.  These are the times Your discipline is the most important even though Your emotions may be a bit frayed.  Stay the course of discipline, these are the times we are also most likely to abandon a really good strategy.  DON'T DO IT!

THERE ARE TIMES WHEN THE MARKET IS JUST CRAPPY! 

Be careful during these times not to beat Yourself up or doubt Your ability, There is nothing wrong with You or Your strategy, it is the market, and the truth is no matter how crazy the market gets, it has control over Your paper, so IT IS RIGHT!  so PROTECT YOUR WEALTH.  Even if You come out of the day slightly down beat up, battered and bruised, it's ok, as long as You preserved as much of Your wealth as You could.  On days like this, it is most important not to let the market take You out of the game!

Sometimes the market is a kitten, but there are times she is a lion; sometimes you just gotta get out alive.  If you survive, the day will come again for you to thrive.  It is just part of the market cycle and it happens.  Don't take it too hard, because the time will come again when the market is lovely and will want to caress and cuddle You, then she will yield plenty of paper for You.  It is the days that the market is sweet and cooperative that we as traders Preserve Capital for.

#1.  First job of every trader: PRESERVE WEALTH!

#2,  Second job of every trader: BUILD WEALTH!





 YOU CAN DO THIS (^_^)!