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.........
Real trading is about how well you handle the Rattle Snake, everything else is gambling.........
Quick question, how much time did it take for you to be a consistent profitable trader? (even if with small profits). And would you please point me some books on price action?
ReplyDeleteThank you very much!
I am still working on my consistency, some days I am the windshield and some days I am the fly. I am always striving to be better. I don't know of any price action books, but Steve Nison's Japanese Candlesticks second edition is a must read.....(^_^)
ReplyDeleteThis is actually a great article. It is the 'right' thing to do, it is the logical thing to do, but yet most novice traders just cannot do it.
ReplyDeleteTraders accept that loses are a part of the game, they are the costs of doing business, but they always have this feeling that *this particular trade that they're in right now* needs to be one of the winners.
So, rather than take a small loss they hold on hoping that it will turn around. Like wise, when they catch a big trend they exit early and grab a tiny profit while they have it rather than risk losing it.
A great article. Well done.
Well said, I think we are all have been there. The hard thing about forex is knowing which trade is going to yield profit and which trade is really bust
DeleteAll need to understand that Forex trading need lots of effots because here we are not selling something.So just follow the successful traders or take advice from reputed advisory firm.
ReplyDeleteAll need to understand that Forex trading need lots of efforts because here we are not selling something.So just follow the successful traders or take advice from reputed advisory firm.
ReplyDeleteDo your trading methods work with the Emini S&P?
ReplyDeleteI see always if have not experience in Forex Trading you lose your money every time.
ReplyDeleteHi guys,
ReplyDeleteThank you so much for this wonderful article really!
If someone want to know more about the forex trading I think this is the right place for you!
There is no fast way of learning it. It takes a lot of practice. Every forex trader goes trough this phase at the beginning.
ReplyDeleteAll need to understand that Forex trading need lots of efforts because here we are not selling something.So just follow the successful traders or take advice from reputed advisory firm.
ReplyDeleteNice article
ReplyDelete