As a trader,
you must have felt like the market is easily out to get you. Sometimes every
trade you make goes against to you and every time you place a trade it
instantly goes into a loss and then never recovers. You take your pain with
your stop and then almost immediately after you are out it moved in your
original direction and had you extended your stop the trade would have come
into a profit. Basically, at times, nothing goes your way.
We have
probably all been there in that position, I know that I have, what do I do?
1. Firstly,
I take a step back. I may take a few days break from trading to regain focus.
2. What I do
NOT do is revenge trade. (For further information, please read some of the
articles in the TRADING ESSENTIALS area of the website).
If you
revenge trade, you will more often than not be forcing trades. Rules, TRADE PLANS, RISK MANAGEMENT which is all
crucial, critical success factors for trading go out of the window.
You have to
remain calm, through the impediment. It is as I have already said maybe a good
time to take a break away from your computer.
It's all
about MANAGING YOUR EMOTIONS. This is what groups consistent good profitable
traders from the rest.
Here is my
approach, and it will come as no surprise.
Check your TRADING PLAN, entry and exit levels, position
sizes, styles of trades, times of trades, stop placements and your overall risk
parameters.
Ask yourself
1. Did you
adhere to your plan?
2. Were you
chasing the market?
You have to
let the market come to you. If you do not, then you run the risk of placing your
broker account under so much trouble that you manage the risk of blowing your
account.
Basically,
as with all the things related to Forex trading, it is boring, repetitive actions and controlled the emotions
that give you the edge as a trader. Do not veer away from the tried and tested
the repetition. It works.
You cannot
predict which way the market will move. You can, however, by using trading
skills around a Pivot points, SMA’s, Bollinger Bands and Fibonacci levels and
using your RISK ASSESSMENT skills increase your probabilities
in trading. It is boring, but this is the reality of trading.
If you turn
way from the disciples you have to set in place via your TRADING PLAN, you are
asking for trouble.
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