Diary Of A Forex Trader
I know what it’s like to be a new forex trader. I know and understand the frustrations and disappointments that a new or advanced trader will go through before the finally hit the nail on head and become a successful, consistent, profitable trader. When I started out about 9 years ago I remember thinking, no praying that someone genuine with the knowledge and understanding of trading would come into my life and guide and help me through the whole process. That person did not come I have spent hours up on hours learning this stuff through trial and error on my own. Now I want to be that person for you and my goal is to help you cut your learning curve by half. Without some sort of guidance and help you really don’t stand much of a chance as most traders get fed up and quit before they have given themselves enough time to learn. Just like any business or career it takes time and many people fail because after a while they convince themselves that there is no way they can make money online trading the forex market. I’m here to tell you that you can, if you commit and apply the necessary discipline required. Persistence is the key here.
I knew in my heart that there has to be a way to make money from forex trading, if others are doing it, I can do it too, and so can you. As a new trader you set up you demo trading account and you go for it, you start making some profitable trades you see what the possibilities are and are eager to go live and trade real money, your thinking this is easy, I can make hundreds of thousands why didn’t I think of this before, and so you set up a live account and go for it only to find out that when you switched to trading real money it’s not so easy now. Why because emotions are now in the way of your success. You over leverage, over risking more than you (emotionally) or your account size can handle, you see the trade going against you and you panic, you trade out only to see it go in the direction you originally thought. Damn another loss. Next time you enter a trade you convince yourself to keep your stop in place and let the trade do its job, you see price approaching your stoploss and you panic again, your convinced the same thing would happen again like last time, you talk to yourself and say, it will probable stop me out and then go my way, ill move my stop a little further down, and only to find out that the it doesn’t and keeps going and going further against you, decreasing your balance further, until the thought of losing another dollar hurts more than admitting you wrong and finally trade out. These are only a few of the common mistakes novice traders make. The quicker you accept that losses are a part of the game the quicker you will succeed. There is no system in the world that works 100% of the time, believe me many have tried, and many claim to have the holy grail but they are only trying to take advantage of your desperation to become a successful trader and the only ones making money are the ones selling you the systems. I have learnt the hard way that if something sounds too good to be true it usually is. Hard work, dedication, discipline and commitment are the ingredients for success in trading. And if you apply these with persistence it will pay off.
Dedicate some time to accumulating trading information and recourses, there are plenty of free ones on the internet, take what works for you and discard what doesn’t, we are all different with different personalities and different risk tolerances, there is more than one way to cook a pasta sauce according to your taste, and so there is more than one way to create a successful trading system. Don’t try to copy someone else, what works for one person doesn’t necessarily work for another, because we are all different. I had a very successful trading friend whom I tried to be like, he would take a trade, I would take the same trade and I would still end up losing and he would win, how was this possible? I realised that we must all adopt a strategy that is suited to our personality and risk tolerance. Many have very successful 5 min strategies, others don’t trade anything below a 1hr chart and others only look at daily and weekly charts. Find your strength, and work with that. I personally prefer to not be tied down to the computer analysing for hours on end so I trade the 4hr and daily charts, which I only have to look at once or twice a day for a few minutes and know if I have a trade coming up, make a decision and then let the trade do its job without any interference. The trick is to be able to walk away and let the market do what it has to do. If you allow yourself to get lured into the hypnotic movement of the charts you will be tempted to make changes from your original trade plan and that’s when mistakes start to happen. Like I said though everyone is different and each one of us needs to find out what works for us.
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To your success!