I’m a greenhorn trader in Forex and I always have a problem regarding trades; I get nervous. I tend to hesitate before posting my trade and the price would move past my would-be entry into the market, or when I do post a trade I always end up closing it early out of sheer nerves and fear of loss of profit. I always feel like the market will exhaust itself so I should pull out of it early to be safe.
Do you guys think I should just post the trade and close my charts?
Greetings Ayrtonm… fear is probably the one thing that trips up most of the smart and talented people that try to get into this game. Fear is normal because market speculation is a world of uncertainty and risk, but most of us grew up being taught that there’s an answer to anything if we work hard enough. Unfortunately, we can never be 100% sure of what’s going to happen and how the market will react.
This means we will lose trades, (especially when we’re just starting out), but less as we get better. This happens because we learn our mistakes, and manage risk in a way that our winners will be bigger than our losers…with work and dedication, we will improve.
So, just keep trading with demo, then to very small accounts when you feel ready. And the more you trade, the more you will improve your skills, the more you will learn to weather the losses, maximize your profits, and develop the fearless trader mindset.
You get nervous because you want to win.
To win you think every trade has to be a winner and you do everything not to lose, ever. In reality trading doesn’t really work like that.
Single trades are not really that important. You win some, lose some and with good risk reward and money management you come out ahead. It’s abit like going to the gym. You lift weights at the gym regularly, eat right and have rest days and you will put on muscle. What you did on a Thursday 3 weeks ago in a particular gym session isn’t that important in the overall scheme of things.
Maybe only trading with pending orders is in option!! It worked for me. I only trade with pending orders. The “disease” of fear to lose, has struck me for some time now. I tried everything to get ride of it, even acupuncture. But nothing really helped. So my workaround is that I trade with pending orders and fix TP.
For that you need good knowledge of risk management and money management so your risk exposure is not higher than your risk appetite!!
Well maybe did not express myself not quite right. I most of the times call it the disease of fear to lose, but it is fear of not being right, although all is according my trading plan. It is not about the money. I got it even if I trade small lots. I think it is part of my education.
But I have my workaround and it suits me and my lifestyle well. I trade supply and demand imbalances and role reversals. So I can quite some time in forehand, on rational way, decide where and how I want to enter the market. The only thing that rests than to translate it in a pending order.
My results from the Tharp Test http://www.tharptradertest.com/pdf/Independent-Trader-Report.pdf silly but it is true. It might help if you get some kind of behavioral therapy. What you describe is a refusal to accept you are wrong, this is an ego problem perhaps you are a middle manager and are use to being in an authoritative position or maybe just in a job you feel relatively dwarfs most people.
Anyway, don’t mind me. Hope you overcome your struggle
Don’t put a big position with a tight SL. The broker will hit you very easy. Start very small and add to it as you go. Never leave the market - scale in and out. And take care with the SL. It will eat your account. my2c.
I’m not a noobie in trading and I’m fully aware of my handicap. I gave up the struggle to try to overcome it! I live with it and with my workaround, I can handle it!
That was an interesting test emeraldorc, I happened to get “Strategic Trader” so I’ll look more into what that means and how I can work with it. I will also give Market Wizards a read.
Mihk also seems to be correct with tight SL, I opened it up a few more pips today and managed to make a sizeable profit, which was a bit irresponsible of me because I hadn’t adjusted my Risk/Reward ratio, I’ll probably spend the weekend doing that and looking over some data.
Thanks again for your opinions, I’ll definitely take them to heart as I review my trading plans over the weekend!
I just finished reading a free pdf “The Secret to Emotion Free Trading.” It’s an oldie. The science it uses “Psycho-cybernetics” is even older; first published in the 60’s, but already used by many high achievers since then including successful traders. You can download it here.
Its core idea is that the main reason we are what we are is because of our [B]Self Image[/B]. If we see ourselves as a losing trader (consciously or otherwise), no matter how hard we try, that Self Image will make us a losing trader. The author gives solution to common trading psychological challenges, including fear of trading, etc.
I’m planning to practice it and see how it will improve my own psyche.
Apparently you are a natural according to Dr Van Tharp’s Super Trader book. Some of the best traders and strategic and you need the least effort to be a good trader and make money. I am an independent trader, so I fall into one of the 8 trader types that are likely to do well in this game, there are others but Dr Van Tharp thinks if you are not in the main 8 you will struggle, so stick to the day job. Well 4 years on I believe him. Hence all should take this test.
I certainly won’t argue with the psychologist that coached Tom Basso, Ed Seykota and Jack D schwager to mention just a few a man that dedicated his life to studying trader psychology and turn poor performing traders to stellar performers.
If he says 8, I believe him. I already fit into one. Read Super Traders to get more perspective on the discussion.
Your question and your request for opinions reminded me of a quote by the famous trader named Jesse Livermore, an American trader from the early part of the 20th century, also known the “[I]Great Bear of Wall Street[/I]”.
His common sense statement is very good advice to remember…
[B]“Markets are never wrong – opinions often are.”[/B]
If you nervous about trading, you trading too big. Lower the lot size till its not an issue. When you have a few trades that meet your criteria, these will become your favorite trade types. With the confidence of experience trading your favorite setups you will increase the size, and not change the way you trade those setups.