As promised, I would like to enumerate several reasons why one should not too quickly give up the ship when it comes to trading Forex. Thoughts of quitting tend to be emotional and often tied to some not insignificant trading loss. Remember the market is benign. It’s not out to get you or I, nor does it care if you are I sink or swim. If I lose money on a trade that’s my own fault; and in my haste to make up for it I place a series of bad trades, with the aggregate result of more losses and thoughts of giving up. A lack of initial success never means that you cannot prevail; analyze what went wrong and add the result to the experience toolbox. In time the winning trades will outnumber the bad ones, and you will the benefit from the experience gained.
Another reason to hang in there is the realization that trading Forex is little different than many other endeavors in life. For sure it’s not an easy endeavor, and when you start to get good, watch out! It is so easy to be careless in this business and carelessness can result in the loss of sizable sums of money. But it is an endeavor that you can master. You will need to put in a lot of time learning, and you will have to be patient, and you will have to be emotionally detached from the results, a nice way of saying you need to get used to losing money now and then. That’s just unavoidable. You can and you will get there. Learn from mistakes and don’t beat yourself up.
Ask yourself, is my trading goal achievable? If you answer yes, then don’t give up! Establish a trading plan with clear rules and objectives, and stick to them. Work the plan like it’s your own personal business – after all, that’s what it is. If the plan is not working then take pause and analyze what is wrong and make the necessary changes. Don’t over trade your account, don’t try to grab every pip in the market. Set realistic goals, not greedy ones. Steady consistent wins will go far to build confidence of a new trader. In competences very, very important in this business.
If you’re having a losing streak, don’t take it to heart. Take a break from trading. Place smaller trades, diminishing the effects of loss should your position go against you. If you can seek advice from fellow traders. Encouragement and mentoring from more experienced traders can go far in assuaging the frustration so often accompanies four trading results. I’m fortunate in this regard as I belong to a group (Slick Trade) which is flush with resources and hopeful traders in the chat room.
And speaking of trade groups, there was one or two experiences I did want to share with you. One was an interesting group I will refer to as Forex Mystery Men. Forex Mystery Men would actually brag about such things as not making money all summer. Who wants to belong to a trading group like that? I want to belong to a group that makes money, and that includes summer! I call them Forex Mystery Men because discontinuing membership in the group was a complete mystery; their website covered no mechanism for terminating membership. Something to be aware of when you join such a group. Escaping this group became a major hassle. As the Romans said, “Caveat Emptor”.
Another interesting group that I once road tested I’ll refer to as a Nadex Ding-Ding. Snazzy website, bad signal group. Signals only generated through special software, only a few signals generated during a small window during the day, which started in the middle of the night where I live. Ding-Ding, signal coming, requiring me to fly away from the breakfast table because I have mere seconds to get in this trade or proof it’s gone! Ding-Ding! Drop the telephone and rush to my desk to get that trade placed, and, oh no, no entry! Phooey! Ding-Ding! Jump out of the shower and – whoops, I took too long, I missed that trade! Needless to say I quickly bailed from this group. Definitely not my idea of trading.
Of the half-dozen or so groups that I belonged to at one time or another, there was only one that I stuck with from the moment I first joined until the present day – and that was Slick Trade. If this isn’t one of the best deals for the Forex / Nadex trader, I don’t know what is. Great signals, expert advisors, educational materials, strategies and the like. If you’re a member, you are fortunate indeed, and, if you’re not a member, run, don’t walk, to the sign-up page, and join, won’t you? I have to tell you that I have been running one of the EA strategies (Foltron) on my live account now for many weeks with outstanding results. My first demo experience with another new strategy (Cool Runnings) blew me away the first week I tried it. I was amazed, and I don’t amaze easily. So get with the program, sign up; you’ll be glad you did! Much more rewarding than Nadex Ding-Ding!
That’s all for now, have a great week and as always thanks for reading! JC
In case you missed my last Pipsqueaks article – CLICK HERE for access!