How you turn your winning day into a total loser
The life of forex trader is totally unpredictable until you are in the driving seat of your own emotion. You might master the art of forex trading but still, you have a lot of things to take care. Making the profit and keeping profit is totally two different things in the forex market. There are many traders who are predetermined about their analysis but lose their grip by hearing the comments of other traders. These things happen due to lack of confidence. It’s always better to lose money with your own trading decision rather than other. You might have three consecutive winners in a single day but yet you end up with a huge loss at the end of the day. So how does it happen? The answer is pretty simple. Consecutive winning makes you overconfident and deviate you away from your trading strategy. At the end of the day you lose the grip into the hands of emotion and start doing over trading At the very beginning you wash your entire day profit and get mad to recover your losses. Things go pretty wrong and every time you enter a trade market turns against you. You and your friend blame the market behavior. But is the market can never be wrong. You get carried away with your emotions and start trading with your belief. Even the clear signal in the chart is ignored by you since you are far away from reality. Almost every single forex trader have to face such situation during their trading career. So let’s see how to deal with it.
Trading the market requires an extreme level of patience and dedication. You can’t expect every single trade to be winners neither you can’t afford too many losses. So what should you do? You need to know when to leave the trading station after a series of losses. Make sure that you don’t enter into the trade after three consecutive winners in a single day. The more you win the more likely you are going to commit a mistake. Be happy with your three winning trade and leave the station. Start doing your favorite thing and give time to your family. There are many traders who are so much addicted to the forex industry that they even forget about their family. But socializing and taking care of the family is enormously important in the life of traders. This refreshes the mind of traders and lets them think clearly again. Sometimes you will be stuck with your trading platform and incur series of losses until you blow up your account. In that case, make sure you go outside for a walk and stop thinking about the forex market at least for the day. Take a sound sleep and in the next morning, you will find that the crazy addiction is gone.
Forex trading and gambling are very closely linked up. Those who are professional traders and successfully trading the forex market have developed unique sets of skills which allow them to take forex as their prime business. The moment you will learn that losing is just a part of this business is the very moment you will start making money out this market. Most novice traders fail to achieve success in this industry due to revenge trading and over trading. Never try to recover your losses in the same day. If you do so you will end up with heavy loss at the end of the day. Recovery factors just after a loss don’t work. You need to think precisely what went t wrong and give a break for at least one day so that the price data refreshes into your mind. I have seen many traders losing thousands of dollars just by trying to recover the loss. If you truly want to take forex as a full-time profession then never ever try to recover your losses. Stick to your trading plan and you will see that the losses are recovered automatically.
Forex trading is not the right job for you if don’t know how to keep words. You must be sincere and stick to your trading decision regardless of external factors. Make sure you follow the golden rule of forex trading that is money management. Even the best traders in the world stick to their money management since they know today or tomorrow they will have losing trades in their portfolio. You can still be profitable in this industry even though your trading strategy is right for 50% of the time. The key to success is proper risk reward ratio. You need to make sure that you are going to earn twice for the amount you have risked. If you practice proper money management then you can afford to lose more and still remain profitable in the long run. Even the most successful forex trader in the industry are making tons of money by using a simple trading strategy which has only 50% winning ratio. Remember successful forex traders wait patiently until the market gives them a suitable trading opportunity.
Forex trading is not a get rich quick scheme. You might have 10 or more consecutive winners but be prepared to accept the losers also. Losing is just a part of this business. Never ever try to recover your losses rather stick to your trading plan. Loss recovery factor simply doesn’t work in this industry since you trade with your emotions. The moment you see the market with your emotion is the very moment you start to bleed your trading account. This phenomenon is in human nature and we can’t eradicate it for good. Rather we must take proper control of your emotions and manage your loss very efficiently so that we can trade the market comfortably. If you truly want to become a forex trader then you must have devotion, dedication, and determination. If you are missing a single ingredient, you are likely to suffer from the heavy financial loss. Wait patiently until the market offers you the golden trading opportunity and makes it your habit to become a successful forex trader.