Sunday, February 27, 2011

4. Don't wanna accept the losses

   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.

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