Difficult Profit in Forex Trading? Try reading this
In forex trading , the target is simple: You can survive to trade the next day. The real challenge is achieving real trading skills until you can make consistent profits.
Now, the question now is: how to know that you are already on the right track ? Will experiencing an automatic loss make you a bad trader? How many transactions do you have to do before you can actually make a profit? Do you have to panic if you have suffered several losses?
Quiet. Sit back and relax. Lean back relaxed, breathe slowly, then exhale slowly as well.
Actually you do not need to worry about the questions above.Remember that loss is part of trading, as well as profit. Nonetheless, still if more loss hits than profit, it means there is something wrong with your trading process.
Well, for that there are at least four things you need to evaluate to find out where the problem actually lies. Of course, actually these things must be known when you do a demo account. but if you haven’t had time to do this evaluation when undergoing a demo account, here are the things you need to think about again:
Do you make a classic mistake in trading?
Humans tend to have a habit of breaking the rules. For example, when a motorist drives at high speed and overtakes the vehicle in front of him, grabs the lane against the flow of traffic and feels sure that everything will be fine. He thought, “Ah, nothing will happen. I will be safe. “
Traders too. Although in every workshop, seminar, or webinar always reminded that more than 95% of traders do not succeed in surviving more than one month for making classic mistakes in forex trading ; still there are groups that are quite ignorant who think that they will be “immune” from these classic mistakes .
Come on, try now to check if you are one of those “fools”. If indeed yes, try to correct it immediately and avoid as hard as the same mistakes later. It’s better to be late than not at all.
Do you have a trading system?
May I ask: how do you make a decision in trading? Did you choose the currency pair you first saw? Do you choose the most colorful technical indicators and buy or sell based on the signals from these indicators?What time frame do you usually use? Or, are you trading based on feeling? Or even based on the weather of the day?
Trading without a trading system is like trying to make a quality article but all you do is press the keyboard button randomly, but you hope the article will win the Pulitzer.
Okay, the Pulitzer parable might be too hyperbolic. Look, trading without a system is like playing PlayStation but also just pressing the button on the joystick randomly and carelessly but hoping you will win the game.Yes, maybe you will win the game once, but surely you won’t know exactly what caused the victory.
A good trading system or strategy is a tool that helps you to achieve profit targets consistently. If you don’t know how to make it, maybe the simple way I’ve written in another article entitled “The Secret to Making Your Own Trading System” can help. The article is written in three parts, I recommend reading it all.
Have you implemented risk management ?
Have you limited the number of lots according to your risk tolerance? Do you apply position sizing ? Do each of your transactions always meet a good risk-to-reward ratio ?
Don’t forget, trading without risk management is the same as gambling .Especially if it turns out you forgot the number two above. Complete is your “sin”.
Are you always DISCIPLINE?
Well, this is the most important key question. Are you always disciplined in carrying out your trading plan? Because no matter how sophisticated the trading system you have, as accurate as any of your position sizing calculations, it won’t be useful if you don’t run it with discipline.
So, have you done an evaluation today?