What type of risk to reward trades do you take or about how many pips do you aim for
I donāt aim for anything except whether a trade meets all my criteria at the time I start in the morning. That includes a three time frame chart set-up all in synch - mostly Daily, 4hr and 1 hr.
Sometimes, if Iām trading a trend breakout, Iāll place a pending BUY or SELL STOP with a S/L that provides breathing space. And for those trades that follow my direction I use a trailing S/L with a objective to reach the next resistance zone. Hopefully, if it breaks through that, Iāll move the S/L up to breakeven and let the trade run to the next resistance zone, upping the S/L if it continues - and so on.
It only needs one profitable trending trade to cover the losses that would invariably occur. Which means controlling the fear of not cashing in a profit at breakeven level.
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Today, many people struggle with anxiety and depression
The problem will keep getting bigger. I wonder how to use it. Are there any companies that focus their products and services around mental problems? I know there are big pharmaceutical companies, but I am looking for one that is oriented exclusively to this aspect. This can be a good investment idea.
Trust me ,youll be good.all you need is just a losing streak.in my case,after 37 losing in a row,i got numb of it
Every beginning trader has a feeling of anxiety until he understands that there is nothing to do in this business without risks. Trading is directly connected with risks and it should be understood as early as possible.
It is normal. nevertheless, try to trade off your emotions.
I believe Fitness or trying at home to get 6 packs abs could help.
Iāve had a problem with this recently. In my strategy, there could be up to 2 or 3 false signals before catching a swing. I was wrong 2 times, then I got scared. I ignored the third signal, and the pairs started trending. I jumped in late.
Iām experiencing fear with following thru on my strategy sometimes. I try to keep in mind that I just have to follow my strategy and the strategy will take care of the rest.
Good idea. Google it.
Yes, in principle, I agree. Todays markets makes it difficult for every retail trader, as the effects of Covid on major currencies is to increase surges of volatility - usually by media reporting affecting market sentiment.
As such, signals while also lagging would also suffer from excess false reversals. It is important to understand that emotions wonāt ever go away, itās being able to recognise them, then manage them thatās important. Your solution is spot on - itās focusing on following process for every identified trade.
That is your edge.
BTW you could try 4 EMAs - 8,22,44, 200 where a Daily buying opportunity on the 2-4 Hr charts uses the 8 crossing above the 22 both below the candles, as well as the 44 and 200 being below the candles as trend confirmation. The opposite for a selling opportunity.
The EMAs are taken from the Ichimoku 6 day parameters, amended for a 5 day trading week.
Keep plugging on. You could lower your lot size in the meantime until regaining confidence.
Cheers.
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Yup. That makes sense. But, for now, Iām mostly on the sidelines. I recently opened about two trades or so. GBP/ILS long is one of them. Weāll see how that goes.
Thereās a lot of D1 consolidation at the moment. So, Iām not adding to any positions in case of reversals. Canāt force the trade. Just gotta wait.
I had trouble during a round of consolidation not long ago. This time, Iām not sweating it. No shaky hands, of FMO.
What makes you the most anxious? Is it the unknown, or is it losing money or something else. I think you need to really identify the source of the anxiety and fear.
If itās blowing your account balance, then trade an amount youāre willing to lose. An amount that can go to zero and you wonāt be in a worse-off place.
Is it the fact that you could lose a trade, regardless of the amount? Every trader loses. You will have losing trades. You may even have losing streaks. You must become comfortable with that reality.
What else causes you anxiety?
Reduce your trading capital and start smaller if youāre struggling with the idea of losing money.
Feeling anxiety, fearfulness is very common and also normal when you trade with a live account. But these negative emotions can affect your trading decisions adversely. Try to meditate and keep your mind calm and stable. Make decisions logically rather than emotionally.
Fear comes when you take risks more than you can afford. However a certain level of fear is natural because of the real money being involved.
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Agreed and I think one must take that much risk to learn better.
The reason why youāre afraid of starting trading is that you canāt realize that you can lose your money. Actually, I handled this task pretty easily, despite the fact that I couldnāt start off trading on a real account for almost several months. I just earned extra money on my job and save it gradually.
Finally, when I saved enough money, it was 1000$ I decided to deposit them. I let myself know that I earned this money for this purpose, so actually I didnāt even count this money when I calculated the budget for the month. So, I just understood that I wouldnāt lose something special, because this money was earned particularly for this objective.
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It is okay to be anxious while trading live for the first time. This is due to the involvement of money and risk factors in trading.
Prefer micro accounts in the beginning for live trading as they have low minimum deposits.
I am also practicing on demo account for quite a while. Hope will go live soon.
Anxiety is very common among new traders, which is the outcome of fear of loss. Traders need to overcome this fear by not aiming for āthe perfect trade.ā As a new trader, you should focus on learning, rather than making profits. Since there are chances that you might lose your first few trades, you should invest money that you can afford to risk. Once you start understanding the market better, you can increase your trading capital. However, this will only work if you learn from your trades, and incorporate your learnings in future trades.
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