10 things i learned in forex

10 things i learned in forex

 

  1. Losses are part of the game – If you don’t understand this you will never control your emotion, you will be sad or angry when you lose and become depressed. Always take losses as a lesson rather because if you become sad when you get trades wrong, you will be sad all the time. You know the rules with good money management you don’t need to win all the trades.
  2. Correcting your psychology – this is one topic that new traders don’t pay attention to because all they think is important is finding the holy grain strategy that will make the super-rich. The longer you trade the more you realize the impact of good or bad psychological factors that affect traders. For those who don’t know what I’m talking about here when I talk about psychological factors, I’m talking about fear of entering a good trade because you think you will lose or greed of not wanting to exit the trade because they want more. Most new traders they hold to loses till they become big while they cut their winners short. That will affect your account negatively.
  3. Being wrong doesn’t mean failure – when trades go against you, take that as lesson since you are trading the best technical strategy of all time. Always look for alternatives, as an experienced trader I like to look at more than one possible outcome in the trade that helps me to avoid surprises, I hate those if they happen.
  4. Big lot vs small lot size – if you are affected by emotions in your trading that mean you are risking too much. If when you get the trade correct you become happy and if it goes against you, your becomes sad change your lot size it too big. Always remember that in order to last longer in forex trading, you need to risk less and win more.
  5. Importance of keeping a journal – a good trader always review his trades, whether if winners of losses they are always something to learn. Do you know that you can get the trade right and make money while you apply a wrong technique, but that luck doesn’t last forever? Reviewing your trades you will see your mistakes in clear thinking now with no pressure. You are bound to see your mistakes or things you did right so that you can apply in other trades, we know that the markets have the tendency of repeating itself.
  6. Stick to one strategy – I remember the old days when I used to change a strategy after a single loss because I was looking for the 100% profitable strategy. That was before I learned of Elliot wave by the way. Changing strategies left, side and center are bad for your growing. as a trader you must always strive for improvement, when you look at yourself 6 months ago they must be different, if not you are going to struggle to get consistency. Take one strategy and master it, remember it not really the strategy that causes you to not make money, it has really a little bit of impact if any. They are a saying that a good trader can make any strategy profitable.
  7. Avoid over trading – another beginners biggest mistake is over trading, they think that not trading is bad, but it actually good. Remember that the more you trade the more you expose your account to a risk. Sometimes I spend 3 days without making a single trade, but that because I’m a position trader. I’m not a big fan of scalping, I believe it exposes your account too much, but it everyone has a choice to become position or scalper or any other trading type.
  8. Effect of high leverage – leverage is a double sided sword, if you know what you are doing in the markets, you can make lots, of money. If not you can lose a lot of money as well. This is another topic misunderstood by a lot of new traders. You think brokers will give you leverage as big as 1:2000 if it was working in their favor most of the time. They are a reason in some countries they have the max leverage that can be offered by brokers. As I said it two-sided sword so if you know what you are doing, you can gain a lot of profit over short time.
  9. Having different mentors – getting different pieces of advice from different traders with different trading philosophy with hamper your account big time, because as I said they are no trader that I know who is always 100% correct in the markets, everyone makes mistakes from time to time. What if you take one mentors losses and mix with another one losses. Your account will be gone in a short period of time. Also it confusing to see which one is right.
  10. Stick to your knowledge – this one applies once you become better at trading, don’t change your trades just because you see another trader has buy position and you have sold. When you wrong it ok, you will go to your journal now and figure out what did you do wrong. Remember they are no failure only lessons.

Happy trading guys..remember to share to so that we can grow as community of elliot wavers.

 

This Post Has 2 Comments

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    Nice read

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