How do you cope mentally with ups and downs
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  1. #1
    Join Date
    Sep 2016
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    19

    Default How do you cope mentally with ups and downs

    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.

  2. #2
    Join Date
    Jul 2013
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    2,540
    Quote Originally Posted by BellamyFX View Post
    It's pretty depressing when you're 100pips up and then 24 or 48 hours later it's sitting at -50 or something.

    I'd have to reduce all your numbers pro rata, by an order of magnitude, to allow for the fact that I do only intraday trades, myself, but I certainly hear you.


    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?

    I might be thinking that now is a good time to close some of the trade, locking in some guaranteed profit whatever happens to the remaining portion.

    More accurately, in fact, I'd have decided that according to the current volatility, on opening the trade, so it would happen automatically.

    Just my perspective, but I do this routinely with trades that move in my favour, in order to avoid losses.

    I look at all my trading as being about risk management, rather than about profit-maximisation.

    People vary a lot, regarding the relative influences on them of "fear of missing out" (if it moves further in your direction) and "fear of making a loss" (if it moves the other way), but I think that for many people, the approach described above, or some variation of it, makes these positions much easier to handle.

  3. #3
    Join Date
    Dec 2015
    Posts
    476
    Generally, when I think now is a good time to close a trade I close the trade. I'd rather have less money but really have them rather than wait for more and lose all I've earned up to that moment. And if I close the trade and the price continues moving in my favour? Well, the market never stops, there will always be another opportunity to trade.

  4. #4
    Bella, you are on to something!
    These two articles might be helpful dealing with exits:
    Should I Stay or Should I Go? - ReThink Group
    Nailing Better Trade Exits - ReThink Group

  5. #5
    Join Date
    Dec 2014
    Posts
    670
    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.
    I use set and forget strategy, in which you place a trade and then forget about it. You can do this by using good money management. If you will have a high risk trade on line, then you will surely face psychological pressure.

  6. #6
    Join Date
    Sep 2016
    Location
    Kuala Lumpur
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    64
    It comes to you with experience. More you understand the specific of trading and learn about causes and consequences, more you think of losses as of lessons. It becomes an usual thing. The main secret is to more profit as a result.

  7. #7
    Join Date
    Jul 2016
    Location
    India
    Posts
    126
    I think you need to stay calm and trade with small amounts and then you could cope up with loses and then you may be ready to face more loss if you earn any.

  8. #8
    Join Date
    Sep 2016
    Location
    Kuala Lumpur, Malaysia
    Posts
    54
    Quote Originally Posted by Whack Attack View Post
    I think you need to stay calm and trade with small amounts and then you could cope up with loses and then you may be ready to face more loss if you earn any.
    How much time did it take you to learn how to keep calm with big losses?
    I'm a newbie trader and even small losses make me upset sometimes (of course, I spend much time thinking my strategy to details, watch markets all the time and the result is loss, who would be happy)...
    How much money better to have on deposit at the beginning? Is $100 a normal depo for a novice or I'd better try less or more?

  9. #9
    Join Date
    Jul 2013
    Posts
    2,540
    Quote Originally Posted by Mohdfx11 View Post
    Is $100 a normal depo for a novice or I'd better try less or more?

    Position-sizing (and learning how to work it out) is much more important to the process than the amounts of money per se.

    In my opinion, whatever the size of your account, you'd be well advised never to expost more than 1% of your account-balance to risk in any individual trade (at least for the first year or so).

    Have you already practised on a demo account, Mohdfx11, and been steadily profitable for a period of time, before trying trading with real money?

  10. #10
    Join Date
    Dec 2014
    Posts
    670
    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.

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