That is a good advice, I must say.
As soon as you see a valid entry pull the trigger 
do not hesitate also if you’re risking an amount that you can afford to lose then why shouldn’t you fell confident?
Analyse your mistakes.
My thoughts exactly.
Automated Trading ! I have been there and since I use my algorithm, no more over trading, over analysing, closing trades too early or burning an account ! We use a pullback or readout strategy for EURUSD & USDJPY - which currency pairs do you trade ?
Sorry if this is a dumb question but can a mechanical system be purely price action based without indicators?
@Emmdy, I think your lack of confidence comes from low self esteem. Look into yourself and tell yourself that you deserve to get something out of trading. Don’t just be a trader who takes whatever is thrown to him. The problem is not the strategy but you need to look inwards. Do mental rehearsals of situations that have caused you to lack confidence or draw back from fear. Rehearse outside trading what you would do if such opportunities come up again when you are in front of the charts.
Are there periods in your life where you show confidence because you succeed in those activities? Look at why you succeeded in those activities. Try to carry the principles of those successes into trading by doing those things that made you succeed in those aspects and rehearsing how you would implement them while trading.
Your problem is not from any strategy. You have to start working on yourself.
One book I would recommend you to read is Trading in the Zone by Mark Douglas. You could find it helpful.
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Most definitely - there are a few mechanical based strategies I have put up on my blog, not one of them uses indicators - if you need the link look in my profile.
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Both arguments are very educating from which ever angle you are standing at.at the end,it all depends on your kind of person.going by @lang15 video i just finished watching,"THAT ONE SHOULD KNOW HIS/HERSELF"if they truly want to be a trader with a future in trading.
so from the example of SR trader you have stated how would you have reacted or in other words how do you see what the market is telling you
Not sure if this is meant for me but it came to my messages - I’m not an SR trader - I’m a breakout, even momentum trader.
The idea of fading market momentum fills me with dread and I personally am very suspect of horizontal lines on charts that are supposed to contain price.
Welcome to the beginning of the end of your FX problems little Padawan.
You’ll never get perfect in your analysis and prediction, no one ever did. Not even the incredible cyclopip.
The best you can ever do is
- Accept intellectually and at heart that trading is a matter of probabilities, you’re good to go as long as the probabilities are in your favor.
- Success in the end will not be defined by how much money you’ll make but by how consistently you follow your edges in the markets, the more consistently you follow your edges, the more consistent your profits will be.
- To understand and appreciate these intellectually, you need to read the book trading in the zone by Mark Douglas. However, you can listen to his talks on how to trade like a professional trader off YouTube.
- You need to develop the emotional skills to do what it takes to trade consistently, to do this, I recommend you a) take a Mindfulness meditation course b) read trading mindfully by (I’ve forgotten the author) c) read the book “Andy Puddicombe
The Headspace Guide to… Mindfulness & Meditation: 10 minutes can make all the difference” by Andy Puddicombe.
You’ll never be right about your analysis all the time, you’ll only get consistent profits when you apply your edges consistently, it’s not about the next ten trades, about the next 50 or 1000 trades.
Good luck but in trading, luck won’t help.
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There’s a couple of factors that helped me tremendously:
- Invest enough time to develop and backtest your system with historical charts, in which you use the historical charts with the same amount of info you would have as if you were trading real-time. I invested several months going through charts, different market conditions and cycles, from very low to extreme volatility etc to make sure my system was robust enough to withstand. This was my first milestone to grow confidence in my system.
- Obviously the process described above does not take into account any emotions you go through when trading live. Everyone has to deal with this and it’s crazy what dopamine does with your body at that point in time. But what I learned (and am still learning), is that if you did a proper analysis, the same way you did when going through historical charts, you enter your trade and just step away from the screen, let the strategy play out, log off from your trading account, and try focusing on other things (go outside, sport…). My worst trades were often the ones where I enter a trade, then constantly checking what it was doing while I should just have relied on my strategy to play out. In the end what you want to achieve is to have the real-life situation mimick as close as possible your simulation (and vice versa obviously) which showed your strategy to be profitable. And another idea that gives me a lot of comfort is the fact that, in the end, it is pure statistics. And you cannot have statistics without outliers.
Hi There!
you can start with the demo trading to boost your confidence and you need to focused on your trading plans and the strategies you are using for the trading.
Maybe these tips are useful to you, they can help increase confidence when operating in the markets:
-Know your trading style
-Set a time frame to operate
-Focus on some currency pairs
-Determine your risk tolerance
-Focus on the process and not on the results
-Reflect and learn when your confidence is threatened
-Avoid overconfidence when trading
I also need to focus on the process not the outcome. I need that reminder
In case, you have just started trading i would recommend you to go through this link. Always follow these golden rules to protect your capital and begin with sensible trading
Confidence is gained through trading. For some people it takes longer than for others, my advice is to keep trading and to keep learning. Take fewer risks and learn from your mistakes.
Don’t jump in for the “big money”
Define your boundaries while risking.
Define a strategy for trading
Set aside your emotions
Keep up with the markets
Avoid over-trading
Make peace with the fact that losing every once in a while is part of the process.
Thanks for the reference! I backtested the pin bar strategies from your blog and got really good results. It’s my favorite Daily tf strategy I’ve found. Super simple and straightforward.
That’s really great news - it gives me lots of encouragement for my blog.
I will say though while I approve of backtesting, going forward it depends very much how disciplined you are in sticking to it.
One of my concerns about explaining my strategies is that if someone uses it and has a loss either they just disregard it (and call me an idiot) or they start tweaking it beyond all recognition.
This is a very common cycle for beginners.
Another potential issue is this particular strategy does not provide too many signals - which is why I prefer the harami inside bar as my bread and butter and pin bar as a little extra flavouring.
I do congratulate you though for deciding on daily charts, by choosing that timeframe you are potentially eliminating many of the discipline problems associated with intraday trading
Finally you might want to check out the weekly charts for this strategy which have amazing results in many cases.
On a weekly you don’t need the second entry the first entry with very small risk works wonders.
Keep checking out the blog from time to time as I have a number of interesting but simple techniques I’m going to be writing about.