I thought you made some really good points! Thanks for posting - I’ll be sure to keep this info in mind and I’m sure it will help many other traders
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That was quite handful to read. I love it. I knew that the impatience is the trait that is very difficult to be cut off and it was going to take long time for that to disappear.
Thanks for sharing this.
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training for everyone takes its own lines and its own time, some even a month will not be enough
How much did it take in your case?
@How much money was lost?
Hmm, good question.
I am guessing in total 30,000 GBP.
However that included a few investments that were not trading as such - but taught me some valuable trading lessons.
In terms of pure trading account losses, maybe 10K.
If you go to my blog, you’ll find a few stories of my early trading years.
In closing, I just want to say that I was the greatest come back kid there was.
My account would run down to the last 500GBP and suddenly Id run it back up to 5K or more.
Happened multiple times - it must have been some deep psychological hurdle.
Thank god those days are far behind me, it was hell.
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Trading non-farm can be dangerous on the one hand, but if you do some reserach in advance, it can be very profitable time to trade. So, you’ve got to prepare for this event.
- Be a defensive-minded trader.
- Watching Charts & Monitoring Trades Will Actually Hurt Your Results.
- The results of your last trade should not affect your next trade.
- Doing LESS will actually get you MORE
- Know where you’re getting out BEFORE you get in
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I totally agree with your tip about being patient which is very important in trading.
Actually, psychology matters a lot in trading and one should definetely change themselves in order to be more suitable for this kind of activity. It is very easy to lose your temper when you deal with your personal money at risk. THat is why it is no wonder why many people are ridiculously impatient while trading or investing. When they observe some minor profit they tend to fix it right away. I think that the growth of your budget should be gradual in order for you to get used to sums that you operate. You can start with trading microlots and thenn graduallly increase the amount of money that you can risk. Such increase is more organic and less stressful and this will help you remain calm and confidenet about the decisions that you make.
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Your last point is on the money (pardon the pun). If you are looking to level up your quality of life then whether you are trading or not, adding income streams (plural) is a must. Non-reliance on forex to make money allows for more emphasis to be placed on the process and challenge instead of how much can I make. You are more likely to approach the markets with a risk first approach rather than profit first.
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I agree. Trading 0.01 lots, then suddenly risking 2% will distract you a lot.
It’ll be hard to think clearly because you won’t have the tolerance for such risk.
But building it gradually will prevent that, I think.
Whenever I have a string of losses I scale back my risk a bit until I can get a grip on my emotions.
Are you sure you are calculating risk at the right frequency? Why would you scale back at the very moment you are about to win? If you are breaking the rules thats one thing but dont do some random thing like reducing your bets suddenly!? You are statistically primed for a win at that point, unless big losing streaks are part of your strategy, hopefully you have solved both if these problems before approaching someone like me. Some systems lack accuracy causing your emotions, so dont scale back review and edit your style until instead of halving you double down. You have a long way to go
I believe that adding extra income streams is vital for long-term success in trading. I get how much newcomers just want to be traders, but one thing the Rich Dad Poor Dad books instilled in me was that real affluent people don’t just have one form of income.
From the psychology of trading standpoint, when you have other forms of income or are working on creating them, it gives you more confidence and patience.
This means you are not as likely to overtrade - which for me was my Achilles heel and I expect it is for many. One of the reasons newcomers become obsessed with day trading, is they want to hit the cash register often.
I understand that but the markets just don’t provide that many profitable opportunities on a daily basis, developing income streams is a worthwhile alternative.
When you were a losing trader for as long as I was, and yet hopelessly devoted to it (and nothing else), you sure waste a hell of a lot of time, waiting for it to come good. In all that time I don’t think I mastered any new skills, besides different ways to look at the market.
The problem with trading, is we are reliant on the market (something beyond our control) for our profit to be made. With other income streams, there is a much more an element of control, or put another way, we can enforce our will on an outcome.
Not so with trading. You can’t force your will on the market - which can be totally frustrating.
I have written numerous times on here, about how improving other aspects of yourself is a net positive for trading. But besides from a few likes (usually from the same people), not many seem to even consider it as an option.
They are more interested in systems and the holy grail - I suppose that’s the newbie curse - kind of like a mirage.
That’s actually a little disappointing because other income streams is an answer to the topic of trading psychology that I don’t think anyone else ever mentions. And yet it’s the one thing I can honestly say helped me more than any other.
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Financial security is vital for having a chance at the right mindset for trading. Few things cause us to act emotionally as money. That’s not to say financial security allows you to treat trading as more of a hobby and not seriously but in my exeprience it helped me to focus on the process and risk rather than how much I could make.
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Thanks for sharing
Couldn’t agree more.
It’s the irony of when your not reliant on the potential income it affords you more stability to learn the art of trading.
When you feel you must earn as quickly as possible the emotional side gets the better of you
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All the points that you’ve mentioned are very true and practical. Especially the last one. Not only in trading but I’ve noticed in other parts of life as well that the more you chase something, the more time it will take to show up. I’ve shifted my focus from money making and believe me, these unexpected profits give me more happiness now.
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From what I understand this was when the pandemic first came around and there were abnormal market conditions
Luckily although new, I’m not burdened by the curse you speak of. Although I do witness on a daily basis it’s an affliction suffered at every level of trading. And if it’s in your trading it’s more than likely an extension of your personal traits or your personality
This is a good advice.
BIG THANKS.
Never over-trade and revenge-trade in Forex because it will gradually drown you.