- don't trust 100% on the trend. something happened on the other side of the globe might affecting the trend. and we don't even have any clue on that - find an EA or trading style that is robust, reliable.
I've busted my account before. I took two weeks rest, get good sleeps that I've missed before. On weekend, I gather the data: - pips (which pairs are volatile or passive, active) - which pair give more profits, which pair floats too long, which pair profit/pips is good. Which pair profit/lot size is good...
then modify the strategy. remove unwanted pairs. change T/P setting etc... then start to trade again. I believe I can make money from FOREX, I'll regret if I stop now...
I normally had frequent discussion with my trader buddies. discuss and discuss. exchange strategies how we play the games, share data... I gain so much from this discussion.. discussion via forum is good, and face to face is even better...
We all have been there, trust me. Some say that 95% of all who try forex lose 100% of thier money. I believe that. I have a therory about the stages each forex trader goes through. I would venture to say nearly everyone with any experience in forex would agree with me. I call this 'The Seven Stages of Tradeing Forex'
You begin by being conservative. You start out being very carefull with your trades, keeping lots small and stops tight.
Which leads to success. Your plan is working, and your account is seeing gains.
Which leads to overconfidence. The plan works every time. look at the gains you are making. You must be a genius. You have found the holy grail..
Which leads to Greed. If you can make this much with one lot, then why not trade 2 lots, right?
Of course what follows is denial. The market will come back, right, it always does, we should just double down.
And then comes panic. No, No, No, not a margin call.........
And then my favorite, dispair. Its all gone, every last bit.
Some times this path is repeated with a few revenge trades thrown in. Sometimes the hit is big, sometimes it is small. But everyone takes a hit. The thing to do is learn from it and try not to go down the same path. Pick yourself up and learn from it. You can do it.
i agree, use real account, no matter how small it is, the psychological factor would be the same as with a bigger account only less nerve wrecking 😀
also don't overtrade - it very easy to get caught with the exciting world of trading and it's even easier to lose your accout faster than you can realize, so make sure you have an exact trading system and that your trades follow it exactly.
I am coming to conclusion that trader especially intra day trader should behave like special forces sniper or Iroquois sitting in ambush waiting for that perfect moment when direction is confirmed, risk is the lowest and probability is the highest. It all comes to experience and thousand hours of watching and trading intra day style. It is always better to miss trade than to get in at bad price. It is not easy to do but we must achieve 100% control over ourselves because this business is not about trading but about making money. Patience pays.
Chikot posted: I am coming to conclusion that trader especially intra day trader should behave like special forces sniper or Iroquois sitting in ambush waiting for that perfect moment when direction is confirmed, risk is the lowest and probability is the highest.
Problem is, the above is know only after the fact, and if you don't take all chances, you will miss out trades. I don't think there is a moment when risk is lowest - I think you're always in a risk when exposed to the markets.
That's true, the risk is always present but the truth is that with enough experience and hours of watching intra day action trader is getting intuitive feelings and combined with a plan it can give those lower risk entries. By lower risk i mean lower pips risk entries.
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