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Don't Use Your Mistake To Gather Experience

Discussion in 'General Forex Talk' started by oluben, Mar 7, 2011.

  1. oluben

    oluben Recruit

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    One of the greatest pain in forex trading is to see one's live trading account go down the drain. The experience I had had and have learned from is 'not to close an open trade when it,s going negative' thinking there will be a reversal. I have learned this lesson and I am doing good..BE WISE.
     
  2. cjforex

    cjforex Recruit

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    Gratz!

    -cjforex-
     
  3. SilverOne

    SilverOne Private

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    Yeap!
    I think too, this is my secret i have known after first month on real trading, don't panic and wait until your position will go in '+'. Be good!
     
  4. Josarian

    Josarian Recruit

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    Yeah it took me a few months of studying but I remember I went in to -2.00% in a demo but I was testing to see what would happen because the news feed was all good. A day later not much change it dropped to -2.20%, three days later it was around up to -1.50% which I thought ok the news feed on this currency is still good, Then another day it shot up to 2% which I then closed out the bid so cha-ching. Too bad it was a demo and not real money :hissyfit:

    One thing I learned was unless there's bad news like a bunch of company foreclosures and/or natural disasters the price will go down waaaay down.
     
  5. Bastian Rubben

    Bastian Rubben SunbirdFx Representative

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    Reversing from positions is a fatal mistake

    I am glad that you brought up this important issue. On my first steps in trading, 7 years ago, I faced the same problem. I had lucky to realize that it is not useful and stopped reversing from a loosing position to another.

    Reversing positions causes overtrading and eventually delete your account. In order to avoid that, you have to reduce the stress while trading, as much as you can. You can do that by: 1. do not open a new position until the current one is closed or have a stop order set in the entry point; 2. Trade with sizes that make you comfortable. By doing that, you will not get the feeling that you are losing too much money that you cannot take.

    Remember: money management is one of the most important elements in trading.

    Good Luck

    Bastian Rubben
    Chief Analyst
    Sunbird fx
     
  6. The Prophet

    The Prophet Private

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    Discipline

    Being long in the tooth and an old school manual trader, I can give you some valuable advice.

    When you have your trading style and system, you've learnt your money management, your'e comfortable with your entry and exit stratergy and you have done your time on demo accounts etc, lost a bit on live accounts and gone through the emotional roller coaster, the answer is simple.

    DISCIPLINE, do not change your system during a trade. You have a tried and tested system that has a higher percentage gain than loss. As soon as you get emotional and start to change things during a trade is when you start to lose money.

    Keep your discipline through every single trade and you will become a successful trader. The Prophet guarantees it!
     
  7. Pharaoh

    Pharaoh Colonel

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    Wise words.

    Now if only we could rig an MT4 script to play a "Don't be an idiot!" warning message every time someone tries to extend a stoploss on an open trade.
     
  8. JSDans

    JSDans Recruit

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    I've really been learning how disciplined and patient you must be while trading. It is hard, but I always keep reminding myself that in the end I will benefit greatly!
     
  9. WaveRider

    WaveRider Sergeant

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    Am I the 90% or 10%?

    I've adopted a hard rule of never executing a market order ever. That includes a SL change. When you plan a trade in advance and place limits and stops, you're sane. When you're staring at a screen, getting scared and fiddle with the order, you become the 90% that buy boats and vacations for the 10%.

    At a certain point an order isn't valid anymore. That's where the SL goes. Once the trade isn't valid, you take the loss and look for the next trade. An intelligently placed SL that was hit is a success, not a failure. If you change the SL, it's because there wasn't a good reason for it in the first place.
     
  10. maximtrad4

    maximtrad4 Recruit

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    I think that this is all about emotions.Many things that concerning emotion which often make you loss on your trading. You can think of your other bad habit that often you do, whenever you are in a bad mood to do a trading, and you can start to make the rule to eliminate all your bad habit one by one. I hope you will try to manage your emotion. However, although you are very smart, without emotional management, you would fail sooner or later. Then, if you want to become the 5%, you must defeat your emotion with emotional management.
     

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