If you can agree with me, there are a lot of traders out there that has outstanding forex trading strategies but still crumbling in losses. This is because 1) They don’t have plans at all or 2) They have plans but due to emotion deviate from the plan. And until you take a bold step of rigidity and maturity, you’ll always be like that. Please think well about this.
Planning is very important for every work. If people work with good plan then they have more chance to do well. But you are right some people have very good plan but they dont work it well for some emotional reason. I think without good plan success is very hard to reach.
It is a very vital factor that you had described. I also have some good strategies but I am not consistent with them, no written trading plan and no execution according to any pre-define rules.
We make plans but mostly can not act upon it fully due to many reasons as market movement is different from our expectations . A good trader’s plan is flexible whre he can get maximum target from his trading when he follow it fully or partially.
Most traders have a trading plan but sticking to the plan is a very big problem and they find themselves losing money.In sticking to plan you need to be discipline and learn how to control emotions in trading.
That’s true. I have a written plan that works well, so far, but at times have had stressed feelings because of losing trades. I began to track me. I used screenshots of my chart with the entry, exit, and notes. This helped me eliminate several habitual mistakes due to being tired or using wrong info or forgetting…
Then, I tracked me using my brokers records and a calendar. The losses that made me disappointed were all within what could be expected by the plan and were bunched usually 2 or three days running at no particular time of the week or month. So were my wins.
Now when I have a string of losses I say so what, I know the winners are on their way right after!
Its amazing to know that the most important aspect of one’s success when it comes to trading is widely overlooked. The psychology of trading should be the very first thing a newbie should try to conquer before thinking about strategies. I can teach my strategy in 10 minutes, but controlling your emotions is a where the difficulty comes in. Fear, Greed are two deadly emotions a trader needs to have under control.
There is the fear of loss if you enter the trade, the fear of the trade going against you once you pull the trigger, and that prevents you from being a successful trader.
Then, there is greed, when you do pull the trigger and you are up in profit, you try to milk the market try and not sticking to your plan (if any)
My advice to all…“Control your emotions and not have your emotions control you” The forex is not an easy market to trade, but it can be traded. You just need to decide if you have the desire and the resilience to be in the top 5% of traders that does make it in this business…
Some say plan the trade, trade the plan yet others say make no plans have no disappointments. What I know is that when I’m sitting in front of the screen my #1 thought is trade the market. The rest falls into place.
I think emotion plays a big role on why it is difficult to stick to a trading plan. And so it is important to learn how to control and manage your emotions so as to prevent huge loss.
This is number rule any serious trader should stick to…. Make a plan of how your trading career will be and be disciplined enough to follow it through.
Yes, one of the biggest problems with new traders is switching from one strategy to another out of panic. I believe that every strategy has flaws and as such, there will always be times when the strategy does not deliver according to expectations. Some traders panic and switch to another strategy when this happens early after developing the strategy only to repeat a similar process over and over again, which results to strategybuilding-test-dump vicious cycle.
so you recommend sticking with your strategy no matter what ? i find it a bit difficult cause when i lose i always try to turn things around. i am new into this and try to control my emotions during trading.
I think the problem lies with the trader more often than not but, rather than looking inwards for the cause, they blame the system/brokers/nfp/ anything they can think of
I have noticed that through many forums, everybody blames anything except theirselves, you need to be responsible for your own self and then blame other factors.
There is no trader who can be good trader without proper trading plan to follow because no one can guarantee to win in every transaction. Good trader must be ready with any condition of market, no matter it is condition which cause profit or loss. If there is proper trading plan, it can help trader to make right decision in every condition. But good planning will be useless if the trader himself didn’t confident with it. So, making good plan will be useful if the planning is done. Good planning will be useful if trader trades as his plan.
This might be a very good philosophy where we must have plan for trade and always trade base on plan , but as reality can not happen like that , so many factor that was be an obstacles that plan can not run smoothly , such as greedy factors , anxiety during trade and many more
Yes, you’re right. In theory, almost all traders knew about it (trade your plan) but in reality, it is not easy to trade as the planning especially when your planning didn’t work well several times in a row. There are many things which can affect on market’s condition but stick on the plan is good habit which trader must have if he wants to be successful in this business. And about greed factor, it can happen to everyone but you won’t be greed when you knew the risk in each transaction.
Traders need to consider the risk and opportunity to make profit in every transaction. Don’t risk more than you could afford to take in single transaction, but use your money management when you’re running forex business.
Its a true fact that most of the traders have wonderful trading plan and if they execute their trading plan with utmost discipline then there are all chances that with no doubt they would excel in the forex trading business.
Trading with a plan is very important because it help you to know the next step to take during a trade and it also help you to be able to trace back your mistake when there is a losing trade. Having a plan is very important part of forex trading.