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

Saturday, February 6, 2010

Facing a string of agoniszing losses?

How often do you find yourself facing a string of agonizing losses in the markets? when every trade you place just seems to find a way to go against you and you just feel that your luck just took a bad turn and subsequently making you doubting your ability as a trader? Well, i guess its normal for us traders to go through this stage of development especially when we are just starting out in this industry. In my opinion, its not our technical skill nor trading method which is the main culprit in this situation, again i deeply believe that these are all linked to our psychology. Again, i would like to strongly remind myself and others who aspire to become a successful trader in near future do pay attention to your thoughts as they develop, learn and master the way to control your emotions when you are in the markets, learn to let go of your emotions and bad past experiences in the market before you put on another trade prior to a loss. Countless of times that in my own experience that a negatively charged emotional trade will often result in a bad one. this is how a string of losses develop which will eat into your profits, i acknowledge that this is the hardest part to master in trading that is to face and accept a loss with a CLEARED HEAD, but i believe that through enough practice and patience one will certainly master it and be successful in this industry. Remember we are here to make money and making money is the only purpose that we are in the markets and one WILL NOT make money when one is trading out of emotions rather than out of a well thought out strategy plan. So, if you have profited from the recent volatility of the market, i congratulate you on the other hand if you had faced with a string of losses because of placing too many emotionally charged trade; DO NOT blame yourself nor the market, accept the loss humbly as a lesson learned from the markets and move on. May you all trade happily and prosper in the near future! remember that control not the markets, but your OWN EMOTIONS, that's the only way forward.

1 comment:

  1. I had a recent experience where i did not place a trade when my strategy confirms a buy/sell signal. It did formed beautifully quite often, bt when i place the trade, it did not occur as what i expected.. I guess like you said psychology, at 1st was excited that my system works, bt when it was mixed with emotions, it is a different story.. Not blaming my system thou, it is a gud one, jz that maybe sumtimes is the wrong timing.. what u think? sum advice hehe..

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