DON'T BE A LOSING TRADER

Don't trade like this guy!!!!!
 
I have heard it said that Traders go broke because they are under capitalized, that isn't true. Traders go broke because of a lack of discipline, not enough education, too much risk, or a poor strategy. If You can lose $100.00, you can lose $1,000,000.00. The problem is the same in both traders, the refusal to let go of losses. The difference between the pro and the amateur isn't necessarily his/her trading ability. Trading is easy!

The difference is in how he/she takes a loss. A disciplined pro will say, " I will stop the bleeding here if I am wrong." The amateur says, " I am right and eventually the market will come back in my favor." If You are thinking that, You have lost Your advantage.

While a pro will let 1 profitable trade kill 10 losses, an amateur will let 1 loss eat the profits of 10 profitable trades. Both traders had the same number of trades but one will end the month in profit and the other will end the month in stress and pain.
Cutting a loss quickly soon ends your attachment to that trade and allows You to pursue a more profitable trade set-up. Part of the reason it is so hard to cut a trade is because You waited forever for Your pet trade set-up and now You not only have to admit that You did not have the advantage that You thought that You did, but now You have to start the process all over again and with a loss. The truth is the next trade set-up might be that golden ticket, but it is mandatory  to wait for another proper trade set-up before reentry into the market.  It is more important to follow your trading plan with a loss than with a monster win because You are fighting with so many negative emotions that can cloud Your trading judgement.

DON'T MARRY ANY POSITION; THE MARKET CAN CHANGE IN AN INSTANT!!!!!!!!
IT IS ESSENTIAL THAT YOU HAVE AN EXIT STRATEGY (ONE THAT WILL CAUSE YOU THE LEAST AMOUNT OF PAIN) IF THINGS DON'T GO AS YOU PLAN!

ANY TRADE CAN TURN INTO A LOSS!

If You play this game long enough, You will eventually meet with disappointment. It happens, cut and move on. The market will give You another chance to make profit.

Never allow yourself to become wounded beyond repair in the market, either financially or emotionally. Cutting a loss means that You love Yourself enough to save yourself.  Don't allow 'them' to frustrate money out of Your pockets... Fight the fight according to your trading plan and win!!!!!!!!!!!

If You are going to win at this game, You have to have the capital to play and cutting trades that have lost the edge is one way to thrive here.

Gotta learn to save yourself! If You are getting stopped out frequently, You have gotta to rethink your strategy because something is wrong.

Free Your mind to find good trade set-ups by cutting trades that are not working in your favor. Holding on to diseased trades only punishes You and eventually it can break You

The biggest discipline that a great trader learns is how to cut a loss

YOU CAN DO THIS (^_^)

 

ONLY TRADERS, NO GAMBLERS ALLOWED !!

 Forex trading is the dream of wealth and financial freedom for so many, but it is a dream that alludes most.  Why?????

There are probably a myriad of answers to this, but the one I want to deal with today is treating forex like a casino.  Forex is not a place to deal with your loneliness, boredom or to get an adrenaline high.  It is a legitimate business opportunity that can create wealth and freedom for your family.

The benefit of forex over the casino is that you have the advantage as a trader, because you can enter the market only when conditions are favorable to you.  You are not just randomly pushing a button hoping for the best.  You have studied your edge and you can cut when your edge doesn't work.

Traders get into trouble when they get on a profit high and can't stop playing or they have a really hard day and must gain that money back.  Both of these out of control scenarios mean disaster for the trader, because that is when a gamblers mindset replaces the trader's logic.

It you are struggling in the market these are some things you can do to help yourself.  

*Limit your time in the market
*Do not enter the market without a clear reason
*Get a hobby
*Spend time outside of your market structure (home/office) 
*Limit the number of trades you take in one session
*Have a set stop loss so that you are not obsessing all day over the market, so if you are wrong, you are out
*Only trade 1 session/day
*Don't try to catch every trade set-up (as most set-ups are traps)
*Get a part time job
*Volunteer your time to those less fortunate
*Take a class
*Teach a class 
*---Most importantly: DON'T LET THE MARKET BE YOUR ONLY OUTLET----GET OUT AND TASTE THE SWEETNESS OF LIFE.

If you are anxious until you place a trade whether profitable or not, you may want to take a long look in the mirror.  
If you are spending bill money to be in the market, you may want to take a long look in the mirror.
If you are putting your bills on a card and spending your cash in the market, you may want to visit your mirror.
If you don't feel normal unless you are in a trade, you may want to do some deep soul searching.
If you are in the market because you don't know what to do with yourself outside of the market, you may want to step away from the screen for a while.

How do they beat us, if we have the advantage? They will beat us hands down if we feel the need to be in the market all of the time regardless of whether we see a clear advantage or not.  They beat us because we are afraid to cut a bad trade.  Being a profitable trader means you are willing to do the uncomfortable stuff losing traders refuse to do like cutting a bad trade quickly. The Market is a merciless tank of piranhas, don't use yourself as bait because you feel the need to be in the market no matter what is happening in it. 

The brokers are profitable overall because most traders are undisciplined and they count on traders lack of discipline and gambling tendencies to keep them rich.  You can not gamble your way to success in forex. IF YOU CAN NOT FOLLOW YOUR OWN RULES WITH DISCIPLINE FOR SUCCESS IN THE MARKET YOU HAVE NO REAL SHOT AT SUCCESS AS A TRADER.  YOU CAN NOT BE IN THE MARKET ALL DAY.  YOU MAY ENTER THE MARKET BY INVITATION ONLY.  

DON'T LET YOUR BROKER FEED OFF OF YOUR FAMILY'S WEALTH BECAUSE YOU ARE UNDISCIPLINED!!!!!!!!

Your rules are there to protect and provide for your family's future.  Eat, slept, breathe and trade them religiously without exception!!!!

YOU CAN DO THIS (^_^)!!!!  

 

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 with 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 (stop losses)

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 interpretation.  Do 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!

 

Believe Your Eyes

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 (^_^)!