Truth is if you have not prepared your mind for losses then forex is not for you.It is experience more than even your text book knowledge that makes the few professional forex traders today; and the litmus test of being able to handle lossess and still get back into the game is the true test of an accomplished trader.
The very moment you begin to believe that you are above making mistakes is the very time you will fall and fall hard.You want the market to give you a direction before you can follow it.This is to make certain that you are not riding on a wild goose chase.It pays to be patient and adhere to the common rules of not being greedy;and I mean that in every way concievable.As greed could come in many forms.Like your lot size for instance;say you have just a $100 to trade with in your account and you opt to make use of a 0.2 lot size when the highest lot size you should be using is 0.1 considering you have just $100 as earlier mentioned.You'll only be going in search of big trouble because when the market reacts it could wipe out your entire account within seconds or mins as the case maybe especially if you did not have a stop to limit your losses.So control that greed tendency so you can make well informed entry decisions.
Greed could also come in the form of you trying to over do things, that is trading more than you should which could in turn ware you out mentaly and that's when the fat lady starts to sing because your brain would have been tired.I recommend trading for not more than 6hrs for those who have the time and can stretch themselves.Then for those who don't seem so comfortable steering at a computer screen for that long then 2-4 hrs should do(For day traders).Also you may have other things you wanna do during the course of the day than steering into your computer for very long.
Well,that said,I hope this would be helpful for those traders who are wondering if it is worth the trouble.If you stick to the common rules of trading there are a lot that you can achieve just by being honest and truthful to yourself.The skies may not be your limit.
Visit www.fxtrendman.blogspot.com to learn more.
Ephraim Archie is a day trader who has been in the business for over four years now.You will have a lot to learn from this blog so feel free to drop your comments.Thankyou.
2 comments:
THAT VERY TRUE YOU HAVE TO LEARN TO CONTROL D GREED TENDENCY AND THE ACT OF TAKIN A REVENGE ON D MARKET,TRUSTH ME U WILL ALWAYS BE ON D LOSING SIDE.
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