First you need to understand that trading is not like regular job! On a regular job you will go to work and
earn your pay, but Forex trading is more like business with unpredictable costs or TENNIS game. In
tennis game even if you are professional player you will loose some and win some. Everything depends on
how good player you are. I have said earlier that you need to play the game to win and not to risk all
you have to only one position. Maybe you are wrong! A little bit later I will talk that you need to be ready
for the market and market has to be ready for you (for your trading strategy). When you are playing the
FOREX game then try to analyze the market and only when you see 3 spots you can enter the market.
What are the 3 spots?
3 spots are:
1. Good signal for entry the market.
2. Exit point ( where to put stop loose).
3. Take profit point!
Lots of you are trading with impatience and uncertainty and when you see only one of these spots you are
jumping into the market. I think that you understand now why it is so important to be patient. I know that
lots of you will say: " If I don't trade today then I won't earn my pay!". You must understand that
sometimes market isn't ready for your strategy for a few days or maybe even a week.
So, if you don't trade today you won't make money and that is correct but you won't loose the money
either. And that is the point. Ok, I will make an explanation why it is so hard to accept the loss. In the
world where we live there are certain rules and we learn to live by those rules from our birth.
When a child does something good it would be rewarded but when child make a mistake it will be
punished. Remember the school, if you make an effort, you have good grades and if you don't make an
effort, you have lousy grades. After school, in life, you can also find this in low regulation. If you make a
mistake then you will bi punished and that is the style of life which forces people to be perfect and that they
mustn't make a mistake. But Forex trading or any other game is all about accepting your mistakes.
(Cut your losses short)-(Let the profit run)! Don't try to make your trading strategy 100% accurate but
accept your losses and find a way to limit them.
Sunday, February 27, 2011
4. Don't wanna accept the losses
5:06 AM
Denis
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