The journey has been painful but indeed its true that trading live is all about mentally and psychology play, not much of an indicator or trading system.
[B][I]1. GREEDY[/I][/B]
I do not like to use the word ALL but I personally lost because of this mentality.
You won something repeatedly and you think you have the ability to read and understand the market, this makes you want more and more. Until your mind was telling you, to risk more in order to gain more. You started to forget about your Money Management rules, because you want to “get rich quick”.
But probably you wouldn’t realized you have just put yourself into the quick sands. [B]You are officially in the 95% traders around the world which failed[/B].
[B][I]2. Go down to shorter time frame and started to scalp.[/I][/B]
You made a good profits in your swing trade and you believe the market is so easy, at least in this current moment. you started to go down your time frame which you are not familiar with and start to make a very short term trade.
You started to make some profits in few minutes by entering trades in 5mins or even 1min time frame, you think you have the ability to identify where the market is heading to. You then start to increase your pip size, since you have the ability to read the market movement so you think why would you not trade in bigger pip value. Because of the fast pace, you then forget about the need of analysis and where to put your Stop Loss & Take Profit. Everything start to become mentally and instant action from you. You enter and exit are right now based on your feeling and probably you wouldn’t realized, you are not much different from Gambling and [B]You are officially in the 95% traders around the world which failed[/B].
[B][I]3. Do not accept a losing trade[/I][/B]
When you have a winning streak of 3-4 trades or probably more with a decent gains, it makes you fly to heaven.
When the 5th trade has turn into lose trade, the market has shows its not going your way, but because of that winning streak, you decided to believe yourself more than anything.
You started to think the market will however U-TURN and go to your desire way because you have a proven analysis which let you had your winning streaks.
You then extended your Stop Loss and you believed that it just needs a little more space for breathing than the previous one, and you do it for 2-3 times.
At last , it hit your stop loss even you have adjusted few times and took you previous wins away, you then get frustrated and “REVENGE” is appearing in your mind without you even notice that.
You started to enter the trade very quickly believe that, if it is not moving to that direction then it must be going to this way.
You wouldn’t realized you are right now “Chasing the market” and [B]you are officially in the 95% traders around the world which failed[/B].
Last thing I would say - You have to understand that everything you do, it have to be with a [B][U]correct attitude and strong discipline[/U][/B].