An Honest Question

[Godspeed108]

Impulse to win sounds like your’re trigger happy. That’s not necessarily a bad thing, some new traders are afraid to pull the trigger. You just need to learn to trade your setup like an odds game, look for only the best setups and take them. Think of trading like playing poker.

Yes, I agree, I too find that being able to act when necessary is a good thing. The art is to know when to act and when to step back. It has been a very good learning process and wisdom is being gained. Thanks for your words.

Ps: I am a very good poker player Now, to transfer that to trading.

[Godspeed108]

You need a real teacher. The one you had didn’t give you any strength apparently.

You are making big assumptions and generalizations without knowing anything. Your comment is insulting, myopic and lacks any kind of depth.

[Godspeed108]

I too am a technical trader and I’ll do my best to provide some useful answers.

2. If you do find yourself becoming impatient, open a demo account and try scalping the shorter timeframes, or closing trades prematurely before they hit your profit target. Burn yourself as much as you need to until you realise the folly of impatience. Visualise the money you could’ve saved (or made) if you only followed your rules.

Kevin, I loved what you said “burn yourself as much as you need…” This has made the learning process go so much deeper and quicker. Frustrating yes, but I do appreciate it as I see that it is a means to an end. It is very good “street” wisdom, rather than book wisdom. And the beauty of the demo account is that I can reset it and start over when I need to. Which I have lol.

[MrGone666]

Hey Folks,

I am enjoying the Babypips Forum and all the good information there is here. I am not new to trading, but, like a lot of traders, I fall into the 90% who try and don’t succeed. After about ten years of on and off trading, and a lot of growing up and eating humble pie, I decided that 2014 is the year to commit to Forex. I have mature and reasonable goals, as well as realistic expectations. I am now 41, so a lot has changed and I myself have grown as a person. I want to eventually make Forex my main means of income and I am committed to this long term.

So, after meeting a great coach and mentor (and after 5 months of demo and 2 months of lessons), I find that my technicals are good and it gives me good signals as to when to get in and out, however, I am seeing one problem keep cropping up and hope that the more seasoned traders here can share some advice as well as how you overcame this situation. Specifics will help me a lot.

What I have been finding is that the impulse to get into a trade, even where the signals are not “A” signals, seem to overcome me frequently. I don’t have problems finding quality trades, rather, I jump into low quality ones and I jump in often. So the result is predictable, I end up with a lot of trades where 3/4 of them are losers and only 1/4 of my trades are winners. Needless to say, this frustrates me a lot and I loose heart. It takes me a few days to regain my composure and confidence before I can sit at the computer again.

My question to the seasoned traders is:

1. How do you overcome the impulse to “win”?
2. What mental techniques do you apply to be patient?
3. How do you steady your own mind when the need arises to jump in when the timing is not right?
4. The main component to all this is that a good signal might not come (ever) so I better take what I can get “right now”!! So behind that sentiment is fear, mild panic and a sense of scarcity.

I would very much appreciate honest, intelligent feedback and thank you all in advance to your contributions. Cheers!!!

Forget all that BS. Embrace uncertainty. Period.

[Drexta]

Hey Folks,

I am enjoying the Babypips Forum and all the good information there is here. I am not new to trading, but, like a lot of traders, I fall into the 90% who try and don’t succeed. After about ten years of on and off trading, and a lot of growing up and eating humble pie, I decided that 2014 is the year to commit to Forex. I have mature and reasonable goals, as well as realistic expectations. I am now 41, so a lot has changed and I myself have grown as a person. I want to eventually make Forex my main means of income and I am committed to this long term.

So, after meeting a great coach and mentor (and after 5 months of demo and 2 months of lessons), I find that my technicals are good and it gives me good signals as to when to get in and out, however, I am seeing one problem keep cropping up and hope that the more seasoned traders here can share some advice as well as how you overcame this situation. Specifics will help me a lot.

What I have been finding is that the impulse to get into a trade, even where the signals are not “A” signals, seem to overcome me frequently. I don’t have problems finding quality trades, rather, I jump into low quality ones and I jump in often. So the result is predictable, I end up with a lot of trades where 3/4 of them are losers and only 1/4 of my trades are winners. Needless to say, this frustrates me a lot and I loose heart. It takes me a few days to regain my composure and confidence before I can sit at the computer again.

My question to the seasoned traders is:

1. How do you overcome the impulse to “win”?
2. What mental techniques do you apply to be patient?
3. How do you steady your own mind when the need arises to jump in when the timing is not right?
4. The main component to all this is that a good signal might not come (ever) so I better take what I can get “right now”!! So behind that sentiment is fear, mild panic and a sense of scarcity.

I would very much appreciate honest, intelligent feedback and thank you all in advance to your contributions. Cheers!!!

I was trading for years (since I was 18) and made my living from it. Not only did it pay for my living, it paid for my schooling and allowed me to have extra time to do things that I like to do. I also took jobs that I wanted to take rather than have to take (I just switched the time hours of my trading).

1. There is no question of “win”. It’s a question of how much will I make?.. If you are looking at it as a win/lose situation, well you already lost. As soon as you enter a trade you lost because they charge you an amount to get into a trade (before the trade does anything at all). If you mean “win” by thinking “Yeah! I just made 650$! hell yeah!” and you don’t feel the same when you make 5$, then your risk is too high. When you trade you should be calm before and during. The right level of risk in all reality is that point where you say “Wow! I just made 450!” and another day saying “G, I only made 440$!”. This 1%,2%,3% per trade stuff is to keep people who think they know what they are doing to keep them out of harms way from themselves. Everyone has their own number, even 0.001%. Learn how money goes around and moves around and you will see there is no win or lose to be had.

2. First I would suggest that you concentrate on a certain aspect, let it be break outs, up/down trending, side trends etc. Then you master just that aspect. Mastering doesn’t mean “yeah I know what it is”. Mastering it means you can identify right at the beginning and right at the end. You can grab everything in between and you even dream about it. Then when the market changes and you are no longer an expert on the same pair you wait until you are again.There is another way also. Get a post-it note and write down “I will not lose money” and post it on the screen and before you enter a trade look at it.

3. Look at #2 and it should resolve this, but if it doesn’t…You’ll need to a few washable colored markers on hand. You also need a mirror. When you want to jump in, read the post it note. When you get out from a trade that made you jump in and it didn’t look right to what you are doing, make a marker and mark a line on your forehead about 1/2 inch (1 CM). Then look in the mirror. If you do it again, use another color.
   In the end, you’ll look like a dumbass. The reason being on of these 3 reasons: a) You have not mastered your trading system when you think you have. b) You have a trading system that you put together that works but decide to go against it. c) You believe your system works to the fullest but in reality doesn’t work. Your goal is not to look like a dumbass. Don’t forget to wash your forehead before you go to sleep, the next day is a new day.

4. ??? You are limiting yourself. If you find a trade signal and it works 1 time. You got very lucky. If it works for a second time, well everything has it’s lucky day in the sun. If it works for a 3rd time, take out a paper and a green and red marker. If the system would have made money from the beginning to the end (not if you do, but the system you are following) mark a green line on the paper. The second time, again, do it again and it will either be a red or green line next to it. Now you will see if your system works and you will see that each line is an entry. So it does come around. Then you limit yourself waiting. If you really have to then wait for 2 weeks until that signal comes around again. Or look for another pair while you wait those 2 weeks. Why only buck fiber? Why not buck kiwi or buck cable or fiber cable? If you really want to trade at that exact time then go through all the pairs looking for that signal and find one. If you’re system is really good then then who cares about forex? You can use it on anything (stocks, bonds, futures, etc.) but, each category has it’s own differences and dangers.

Gain money, and gain money consistently. That is your goal.

[mihk]

Trading nowadays looks like a rape in progress.
Enter quickly because of the signal, ride it, rape it and leave it before you can get into trouble.
On a second thought I think G.Soros did it too in '92, such that everybody has an excuse.

[luistercer0]

Do you feel confortable with the strategy you are taking?
If you worry about a trade, about what is going on with it, thinking of making a stop profit or closing positions earlier in time, then, you are not following the whole plan. YOU MUST HAVE A METICULOUS PLAN, with all the possibilities that may happen well defined. You have to rely on your trading system, not to be worry about what is going to happen if…
Have you backtested enough not to be worried about your entries?
At the time you feel confortable, you will not think in terms of money. Sometimes we feel the hunger of money, maybe because we want to restore for a big loss or we need it to pay our bills. And there is where we start overtrading.

If you can trade without thinking in terms of money, your trade will became more mechanical and your statistics will be improved
.

[ontario]

Trading nowadays looks like a rape in progress.
Enter quickly because of the signal, ride it, rape it and leave it before you can get into trouble.
On a second thought I think G.Soros did it too in '92, such that everybody has an excuse.

Indeed, because every trader fight his own battles and stand against the whole market, the rest of its members. To win means rake off earlier and quicker than others.

[FOREXunlimited]

Thanks to everyone who took some time and penned your thoughts. I appreciate how fully you shared your knowledge as well as your own experienced. Some made me chuckle and some made me nod as I could relate very much to what you were saying or the point you were making.

As far as my progress is concerned, I am very optimistic. When I started demo trading in Feb (till about April), I was mostly in the minuses. Then from May till present, I am at break-even-ish. I am very happy with my results, the techniques I’ve got to hone and the state of mind I find myself in. Forex is definitely a long game and I certainly in it for the long haul. Looking forward to sharing more news and meeting like minded people. Thanks again all.

Any update?

[Godspeed108]

Any update?

I’m doing well and progress is encouraging. It has been 7 months now and there has been a great deal of improvement. The biggest factor has been the psychology of trading; I find I am trading less and making more money or taking more pips. I take one, if not two trades a day, I make more and loose less and am able to catch a trend for a decent part of its run as well as stick to my trading strategy.

It goes without saying, the system is still being refined and tested, but the overall result makes gives me a lot of confidence and makes me happy to know that this is more than achievable. I will trade for a few more months and allow a positive feedback loop to happen, then I will open a small account and take it from there.

I have found that the biggest factor in success is determination and persistence, as well as a mindset that I can do it. That has carried me through it all and I look forward to what is to come.