The Secret of Successful Trading

"Successful traders have a larger edge and better money management than unsuccessful traders. Unlike popular belief however, this study shows that the smaller edge of successful traders is not the cause of their failure. Traders' failures can be explained almost exclusively by their poor money management practices."

"The Secrets of Successful Trading", Fernando Diaz

Friday, April 17, 2009

Rain or shine, i will still be here !

well, in trading sometimes you will hit a rough patch and get some bruises psychologically, i guess i'm in one now, haha. At times all the trades will just work out fine and you'd have streaks of winning trades. and at some time you will have some losers which will end up with more losers. So, why a losing trade can turn to a string of losing trades? I guess the main problem here with people is that we carry a strong emotional attachement to our stuff your money, car, house, wife and the lists goes on and on! So when we lose, we feel that the market had "taken" away something that belongs to us and as our human nature we are impatient to get it back! and wham! you made lots of stupid mistakes just to get back your losses in a hurry without giving much judgement to what the market is doing. At that time our mind might just be focusing on "getting back my losses" rather than focusing on what the market is telling us, a shift in this focus is very bad in trading. when we trade we want to focus only on what the market is telling us and only that, nothing else matters! if there is a shift in focus it means that we are already out of sync with the market and hence stupid mistakes will follow.

Looking back at all the entries i made yesterday, it was alright some even have the potential to go +30 +50 pips or more... so what made this winning trades into lousy loosing trades? Yes, i was not focus and got irritated and impatient due to some very small loss i incurred earlier. I think thats the main reason. and at the start of the day my mind set was already not correct, i was focusing on getting back my losses rather than on the market, so this already screwed my psychology up. i wasnt focused on what the market is telling me.

Well, as a remedy i will take a small break for today to refresh my mind and get all the negative emotions away from me. This is business, ups and downs are sometimes inevitable, but hey! trading is my passion and my career, and this little rough patch wont stop me from achieving my dreams! Rain or shine, i will still be here! to success and elite performance! HERE I COME!!! YEAH!!!

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