How do you cope mentally with ups and downs - Page 2
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  1. #11
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    Quote Originally Posted by BellamyFX View Post
    Say you short a pair and it goes in your favour 100 pips. You're thinking is now a good time to close the trade? You deicide to hold it and it shoots up 150 pips and now you're -50 pips. You're still holding it because it hasn't hit your stop yet and goes in your favour 70 pips.

    Then it loses some, gains some, loses some and just never seems to stay on a current path. I expect up and down movement of course but mentally it messes with your mind. It's pretty depressing when you're 100pips up and then 24 or 48 hours later it's sitting at -50 or something.
    Hello Bellamy,

    Personally I would say it all depends on my:

    Mindset and
    Position size.

    For instance, If I was risking 2% of my account for a little more than 2% as returns, I normally would not bother baby sitting such trades because most times I do hold trades for days before I take profit and even if I lose the trade, it doesn't really hurt because I know this game is all about consistency in your wins at the end of the day.

    On the other hand, if I am risking 5% of my account to get something bigger in a volatile pair, I would baby the trade and when I sense that the pair is going to make any form of retracement which I may have no control over, I take profits at that instance...Most times it still ends up going my way but hey, the fact that I risked a lot on that trade, gives me that satisfaction that I still earned good bread that's worth more than 3 regular trades hitting target profit.

    You just have to know when to trade safe when the odds are against you and when to be very aggressive when your muse is smiling down at you.

    Hope this helps, I wish you all the best

  2. #12
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    Quote Originally Posted by Pipsharingan View Post
    You just have to know when to trade safe when the odds are against you and when to be very aggressive when your muse is smiling down at you.t
    Pipsharingan quite clearly has the holy grail here - info that we would all love to know.

    I have one question though, if you don't perhaps mind?

    If you already know that the odds are against you prior to entering a trade, as you have stated in the above quote; why enter in the first place? This sounds like a diminishing returns approach?
    Last edited by RISKonFX; 04-14-2017 at 12:44 PM.

  3. #13
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    Quote Originally Posted by Jezzode View Post
    Pipsharingan quite clearly has the holy grail here - info that we would all love to know.

    I have one question though, if you don't perhaps mind?

    If you already know that the odds are against you prior to entering a trade, as you have stated in the above quote; why enter in the first place? This sounds like a diminishing returns approach?
    Good Question,

    I don't know for how long you have been trading, but I do know that there are good days/weeks and bad day/weeks for every trader no matter how profitable you may be. If you do keep a journal and look back in time, it will give you a clue to when and how to maximize your trades and when to just play safe. Let me explain further by giving an example.

    Say my first week of March, I took 2 trades and they were positive (irrespective of whether they hit my target profit or not), my second week in March I will be more assertive while trading as regarding my R/R ratio because my confidence has been boosted by my previous performance, most times this technique gives you that BIG BREAK you have been waiting for.

    On the other hand I may start the first week of March with two losses, if so my second week will be plagued by me being more conservative as regarding R/R ratio in my trading. This is a common behavior among some traders, you have to truly master yourself and know when you are at peak productivity and when you are just staying afloat, if a trader has not established this yet in his career, then trading becomes a merry-go-round affair where profits made today is giving back to the market.

    I hope this helps

  4. #14
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    Quote Originally Posted by Pipsharingan View Post
    Good Question,

    I don't know for how long you have been trading, but I do know that there are good days/weeks and bad day/weeks for every trader no matter how profitable you may be. If you do keep a journal and look back in time, it will give you a clue to when and how to maximize your trades and when to just play safe. Let me explain further by giving an example.

    Say my first week of March, I took 2 trades and they were positive (irrespective of whether they hit my target profit or not), my second week in March I will be more assertive while trading as regarding my R/R ratio because my confidence has been boosted by my previous performance, most times this technique gives you that BIG BREAK you have been waiting for.

    On the other hand I may start the first week of March with two losses, if so my second week will be plagued by me being more conservative as regarding R/R ratio in my trading. This is a common behavior among some traders, you have to truly master yourself and know when you are at peak productivity and when you are just staying afloat, if a trader has not established this yet in his career, then trading becomes a merry-go-round affair where profits made today is giving back to the market.

    I hope this helps
    I totally agree that there are good days and bad days - that's all part of trading, isn't it!

    I read your reply in the wrong context according to your most previous answer. I incorrectly assumed that what you meant was that you knew that a particular trade 'set-up' was always a low probability trade [in the context of expected positive returns], regardless of when it is placed into the market. Naturally, this made me ask the question "why would one even entertain the trade in the first instance".

    What you're saying is that you adapt your risk in monetary terms as a direct action of your running success rate, which really translates to compounding up after successful trades and compounding down after unsuccessful trades (according to what you have said, perhaps?)

    Personally, I don't adjust % of risk taken on any trade, irrespective of my in-month run rate, all be it either an incredibly good month to date or a terrible month to date. What I do actually do though is compound at each month end while keeping the % risk per trade constant. Regardless of emotions - I aim to keep everything consistent

    And to answer your first comment; I've been entertaining the markets since the back end of 2008.
    Last edited by RISKonFX; 04-14-2017 at 04:27 PM.

  5. #15
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    Dec 2014
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    I have to understand the reality of forex. Hers ups and downs are daily routine. We do trading for profit taking but it is not necessary all out trading will be profitable. We nave to accept loss too . If every one is winner then how market will run. At the same time some one is profit and other one is in loss. It is app about market ups and downs where we not cope well.

  6. #16
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    Quote Originally Posted by Jezzode View Post
    I totally agree that there are good days and bad days - that's all part of trading, isn't it!

    I read your reply in the wrong context according to your most previous answer. I incorrectly assumed that what you meant was that you knew that a particular trade 'set-up' was always a low probability trade [in the context of expected positive returns], regardless of when it is placed into the market. Naturally, this made me ask the question "why would one even entertain the trade in the first instance".

    What you're saying is that you adapt your risk in monetary terms as a direct action of your running success rate, which really translates to compounding up after successful trades and compounding down after unsuccessful trades (according to what you have said, perhaps?)

    Personally, I don't adjust % of risk taken on any trade, irrespective of my in-month run rate, all be it either an incredibly good month to date or a terrible month to date. What I do actually do though is compound at each month end while keeping the % risk per trade constant. Regardless of emotions - I aim to keep everything consistent

    And to answer your first comment; I've been entertaining the markets since the back end of 2008.
    Finally Jezzode,

    we are on the same page, that's the beauty of forex, there are so many ways to trade the market, some traders are the conservative type, others are risk takers while some traders fall in between. The whole idea is to master which suits you along your forex trading career.

  7. #17
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    Quote Originally Posted by Pipsharingan View Post
    Finally Jezzode,
    I didn't realise we were waiting for something...

  8. #18
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    in my opinion.

    knowing when to get out/stay in a trade is an important part that you just need to practice over and over.

    When i am in a trade, i actively remind myself to not get emotional and make wrong decisions. if i exit the trade down and it goes in my favor then nevermind. After a while of doing this, you will just know when the decision your making is an emotional one and to relax and look again.

    If you are a confident that you entered the correct trade, then it is important to not let emotion dictate what you do once the trade is on.

    Remember just because your system said price was going to do one thing, does not mean price is obliged to do it.

  9. #19
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    Quote Originally Posted by StavFX View Post
    Remember just because your system said price was going to do one thing, does not mean price is obliged to do it.
    This is a fairly important comment; and one that traders clearly change their mind upon when attempting the learning curve.

    I believe this above statement changes up to three times when making the transition from complete newbie to novice and then finally to professional - at least when considering the mindset which is used when trading.

    1. Newbie: Attempting to predict where future price levels will be according to historical behavior. The average newbie also understands that it's not possible to be correct all the time.

    2. Novice: Stops trying to predict and understands that price is [mostly] random, and that taking the approach whereby you try to predict future price levels is incorrect. Instead, the average novice trader starts to understand that trading is based on probabilities of being profitable; regardless of the market direction - the penny drops and they finally stop trying to predict and actually accept.

    3. Professional: Geared towards positive expectancy, totally understating and accepting that trading is all about probabilities. A professional trader will have statistics backing up each and every decision that they make within the market; this allows them to accept losses as they know over the long term they will still be profitable.

    A fairly big difference from from tier 1 to tier 3 - however a benchmark that I find reliable when attempting to understand how much a trader 'really' knows...

  10. #20
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    Quote Originally Posted by Jezzode View Post
    This is a fairly important comment; and one that traders clearly change their mind upon when attempting the learning curve.

    I believe this above statement changes up to three times when making the transition from complete newbie to novice and then finally to professional - at least when considering the mindset which is used when trading.

    1. Newbie: Attempting to predict where future price levels will be according to historical behavior. The average newbie also understands that it's not possible to be correct all the time.

    2. Novice: Stops trying to predict and understands that price is [mostly] random, and that taking the approach whereby you try to predict future price levels is incorrect. Instead, the average novice trader starts to understand that trading is based on probabilities of being profitable; regardless of the market direction - the penny drops and they finally stop trying to predict and actually accept.

    3. Professional: Geared towards positive expectancy, totally understating and accepting that trading is all about probabilities. A professional trader will have statistics backing up each and every decision that they make within the market; this allows them to accept losses as they know over the long term they will still be profitable.

    A fairly big difference from from tier 1 to tier 3 - however a benchmark that I find reliable when attempting to understand how much a trader 'really' knows...
    Agreed. Very good breakdown.

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