Accepting responsibility for your losses and trading mistakes is paramount to turning your trading around.
Big reason many traders can’t make income is as long as they won’t admit they are to blame for their losses.
You will never improve your trading being that you won’t feel any need to correct your weaknesses if you don’t believe you have any, Therefore in case you continually blame other people or things for your trading losses. Remember, at least the second time around, If you use a tip or a piece of advice from a broker or from somebody else, and you lose money, it’s your fault for listening to them.
Although, the first step in any self the big problem and that you have a serious problem. Trading shouldn’t be viewed or treated as gambling, you don’t need to double down just being that you are up some money. You see, that ain’t how it works. However, this happens all similar amount almost any trade or who have exactly how many times have you won a few trades in a row, made some money, and later given it all back quicker than you made it?
Our aim is to master our trading strategy to the point of knowing exactly what we are looking for in the market any time we sit down behind our computer screen, as price action traders. Just being that you know exactly WHAT you are looking for in the market, so this does NOT mean that it WILL work out. Perhaps the main reason most traders lose money is as quite a few people have little self control and can not resist the temptation to overtrade and over leverage when there’s noone to be accountable to. Normally, even when they KNOW they have a statistically higher chance of winning by sticking with the trend until Surely it’s clearly finished, another main reason most traders lose money is as they try to buck the trend for some reason. Fact, the hard part comes after you enter a trade. So it is not the hard part of trading. With that said, any trader knows after a little practice and education on a ‘high probability’ trading method like price action, they can pick ‘nearterm’ market direction with pretty good accuracy, at least enough to get into open profit.
That’s a fact, it’s poor trade management, if there is one single thing that most traders do wrong who lose money on a consistent basis.
No human being on Earth might be more objective or less emotional than they should be when there money is NOT on the line.
It’s a fact of human psychology that when something you care about is at risk, you become more emotional. Most traders have no forex trade management plan, either being that they don’t understand trade management, or don’t think they need to do it. Notice, so that’s just ridiculous. What these traders don’t understand is that they are sabotaging their own effort and potential skill as a trader by thinking they will somehow behave more logically and effectively AFTER entering a trade than BEFORE. Everyone knows this. You have to take into consideration what you can REALISTICALLY expect to make any month or week, given the quantity of money you have to trade with.
One of the things that is definitely common to all traders who are losing money in the markets is that they have unrealistic expectations. Look, there’s no way on Earth you are might be able to live off your trading, I’d say in case you have $ 500 to trade with. They will also rack up a lot more fees via spreads and commissions over the course of a year than traders who stick to the higher time frames and remember the value of self discipline and having patience, traders who just jump in and out of the market on emotion and greed, shall not only suffer a lot more losing trades. One of the things that definitely prevents most traders from making money in the market is overtrading. Considering the above said. As human beings we all have a tendency to pass the blame and find fault elsewhere. When you are trading badly, it’s your fault and nobody else’ If you find you are losing money in the markets So it’s not your broker’s fault, nor is it the result of a bad quote, a bad tip, or a hardware failure.
Look, there’s no mysterious They out to get you or steal your money from you.
To speak, traders who don’t have a definable and mastered trading method are hurting themselves as they essentially have no trading edge and are just shooting in the dark.
Like price action, the key we’ve got that you REALLY NEED TO MASTER an effective trading strategy. Of course, and truly master one Forex trading strategy at a time, you will largely eliminate the issue of fear and second guessing your trades, when you learn one effective trading strategy like price action. Most aspiring traders just jump around from one trading strategy or system to the next, never really giving one enough time to truly master it.