Back when I first started trading, I struggled with money management like most
traders do at some point, so I came up with a little «trick» to make the impact of each win or loss seem more «real» and impactful.
Using the same confusing trading system over and over and trying to «make it work» is something that most
traders do at some point in their careers.
Not exact matches
In this scenario, it's irrational for a
trader to
do anything except make ultra-risky bets — even on securities he knows will eventually tank
at some
point.
However, most
traders do not put in the necessary time required to reach the
point of truly mastering one Forex trading strategy
at a time, instead they quickly skim through material in a haphazard manner because they can not resist the urge to start trading real money.
If you enter when the market is extended, which is usually when most
traders «feel good» about entering since the market looks «safe», it's
at this
point that the market has a higher - probability of retracing and stopping you out for a loss because you didn't wait for the retrace.
But the only reasons to own a stock that doesn't pay dividends is to sell again
at a later
point, unless you manage to get 51 % of them which I doubt most
traders try to
do.
You can succeed
at anything if you want it enough, and Forex trading is no different, so right now you should ask yourself «How much
do I want to be a successful Forex
trader» and then go back and re-read this article and begin implementing the
points discussed here immediately.
Essentially, you have to be
at a
point in your life where you are already happy and have a plan B to fall back on in case you don't make it as a
trader, this will naturally increase your odds of becoming a very successful
trader.
An interesting interview that Chairman and CEO of Interactive Brokers, Thomas Peterffy, had with CNBC
pointed to a storm brewing as
traders look to unwind bets and are largely
at the mercy of the market to
do so.
The
trader who works smart knows that there comes a
point at which he / she has to let the market
do the heavy lifting.
The «Big Picture» of Fundamental analysis is good
at identifying general long - term trends in price movement, but it
does not give enough detail to provide entry and exit
points for a
trader.
This sounds a little irrational because the same criteria has led to long term profitability, but I would guess that most experienced
traders have
done exactly what I have just described
at some
point.