ARE YOU LOSING IN THE MARKET? THEN READ BELOW
British Pound/U.S. Dollar FX:GBPUSD
Losing is inevitable. To be a successful trader you must truly truly understand this. Look back at my analysis. I have both winners and losers and I absolutely love them both.
Why do love my losses? Because I don’t see them as losses, I see them as lessons. Every set up that doesn’t go as I anticipated is crucial information I must study this is truly what has made me good technically speaking. I learn from my mistakes and I don’t repeat them.
Second most important fact is that, Risk Management ALLOWS me to learn from my losses. If my trade goes bad and I lose 1% or 2% on a trade, I don’t feel bad , I simply move on to the next trade and take the information the market has given me and STUDY it. The moment I risk more than 2% and the trades goes bad is the moment my mental being shifts, the emotions start rolling in. I want to close but the trade is valid, I get scared, question why I didn’t risk less etc and I’m sure you can all relate to this. Once this happens, it’s very hard to study the losing trade because you now associate it with pain and you avoid looking back at it at all costs.
1. To succeed you must fail, to succeed after failure, you must gain experience from your failures.
2. In order to gain experience form your failures, you must manage your risk, by managing your risk, you are controlling your emotions, by controlling your emotions you are allowing yourself to think analytically.
3. Trading is game of probabilities not guarantees.