One of the most important things You can do as a trader is to control your risk. In other words pre-set a point that You have determined that You could possibly be wrong.
Remember, trading isn't hard, it is just tricky because everyday the market does the same thing, it moves up and down and sideways and gets choppy. It not only does this every day, but every week, every month and every year. Your job is to determine the primary direction of the market's movement and try to profit from that knowledge.
Sounds easy, but there are hidden traps in the market to snag You, and keep things interesting. Market Makers are always trying to to trick You before taking price strongly against You. They are attempting to trap You in a losing position. This happens everyday in the market, and it WILL eventually happen to You too.
You advantage is in keeping your losses small. Have a predetermined amount of pips the You are willing to lose. Once You have determined that amount, 'say 20 pips or so on a short term trade, MAKE NO EXCEPTIONS!!!!!!!
A FREE RUNNING LOSS can be a major game changer!
It should not take a -200 pips in short term trading before You realize that You have loss Your advantage. If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!
Being a pro traders does mean that you never take losses, being a Pro Trader means that You never let losses take You out of the game!!!
NEVER LET THEM TRAP YOU!!!!!!!
If You are telling yourself "Ah it will come back", chances are very good that You are already in trouble!
CUT BAD TRADES QUICKLY AND GO IN THE DIRECTION OF PROFIT!!!!!
YOU CAN DO THIS (^_^)!